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Lack of U.S. Storage Capacity May Drive Down Oil Prices
The volume of crude oil in storage in the U.S. is at an 80-year high, according to the U.S.
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The volume of crude oil in storage in the U.S. is at an 80-year high, according to the U.S. Dept. of Energy. The Associated Press says the country could soon run out of places to put the excess, raising the possibility of even lower fuel prices in the months ahead.
Since early January U.S. has been gaining through production or imports at least 1 million barrels more oil than it's consuming. AP says existing storage facilities are projected to become topped up by mid-April.
The news service cites a commodities analyst who opines a continuing glut could drive down oil prices from around $50 per barrel today to as low as $20 a few months from now. Oil was at about $107 last June.
AP notes that other experts predict a significant, if more moderate, decline in current oil futures. Even so, that would drag down gasoline prices and prompt producers to further reduce output.
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