The Price of Oil is on the Rise. People are Pissed

16 Jun

For the past couple of years, we’ve seen the price of gas hit an all time high only to see it hit somewhat baseline prices during these past few months. The sound of swiping credit cards filled the air as Americans hesitantly filled their gas tanks. $4/gallon was the average price no matter what county, district, or state you were in–there was no escaping. Eventually, the price of gas dropped down to $2/gallon, but it may be short lived. The price for a barrel of oil has now reached $70, doubling in price since Feb. Long story short, get ready for a summer with no road trips, stricter commutes, tighter budgets, and lonely, lonely saturday nights.

[via]  

“Morgan Stanley found that the inverse correlation between a weakening U.S. dollar and rising crude prices was also closing in on a record high. Because oil is priced in dollars, when the value of the dollar falls it makes oil cheaper in other currencies — simultaneously boosting consumption outside the U.S. and motivating non-U.S. producers to raise prices to make up for the purchasing power they’ve lost in the currency conversion.

Concerns about the ballooning deficit in the U.S. have caused investors to begin fleeing the dollar. The U.S. dollar index, which measures the value of the greenback against six major world currencies, has dropped 9% since the beginning of March. As it falls, oil prices are rising. If it falls further, they’ll rise higher.”

Guess the only thing to do now is to ignore this problem until it goes away. Time heals all wounds.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: