"But they say the most important factor is the falling value of the dollar, which is encouraging traders, institutions and foreign countries to invest their cash in hard assets like oil and gold. Oil is priced in dollars on global markets, and a falling dollar almost always puts upward pressure on oil."
Borrowed and / or Printed Money resulting in a weak dollar. Oil is traded in Dollars and since there are more dollars (less value) going around... be prepared for higher gas prices on the way.
It has nothing to do with supply and demand and "everything to do with the weakness of the dollar," AAA South spokesman Gregg Laskoski said.
Gas prices usually decline in the fourth quarter. After Oct. 1, refineries switch to a winter blend that requires fewer additives and is cheaper to produce. Those savings are usually passed on to motorists.
In fact, gas prices have risen in the fourth quarter only once in the past 30 years, Laskoski said.
Something to think about before supporting Subsidies funded with Borrowed/Printed Money without thinking of the consequences.
I think most Real Estate Agents can certainly remember the drag we saw last time we saw $4 a gallon gasoline. Cities such as Las Vegas that rely on tourism certainly don't need it... especially right now.
To every action there is always an equal and opposite reaction....
I'm all for high gas prices though they should be coming from taxation not oil company profits. High gas prices are exactly what we need so behavior and purchasing decisions will change.
@ Liz - Interesting and I'm sure that will be coming soon enough. However... oil prices are currently rising because the value of the dollar is getting weaker and weaker and not because of the demand for oil.
My title of high gas prices was just used to attract attention of just one factor taking place as more debt is piled on and money is printed up to pay for everything... Mortgage Securities, $8,000 tax credits, etc.. etc..
Perhaps a Summary of the Argentinian Currency Crisis gives a hint of past mistakes trying to solve everybody's problems:
I think there should be at least a $1 gas tax or more. We pay way too little for gas and that is stopping us from development of alternative energies. The tax could actually be used to fix roads, create more bike lanes, and tremendously improve mass transit.
False market gains are causing the price of crude to edge up!! I will be so thankful when our dependency on foreign oil finally starts to taper with emerging technology!! Thanks for posting!!
It has nothing to do with supply and demand and "everything to do with the weakness of the dollar," AAA South spokesman Gregg Laskoski said.
Gas prices usually decline in the fourth quarter. After Oct. 1, refineries switch to a winter blend that requires fewer additives and is cheaper to produce. Those savings are usually passed on to motorists.
In fact, gas prices have risen in the fourth quarter only once in the past 30 years, Laskoski said.
"It will drop flying in Colorado Springs, Colo., and Wichita, Kan. And it is trimming Las Vegas flights from 64 departures per day to 36. The airline will close crew bases in Las Vegas and at LaGuardia airport in New York on Jan. 31, and in Boston on May 2."
I don't know about anybody else... but the last several flights I've taken in and out of Las Vegas have been jam packed. Is U.S. Airways predicting higher fuel costs next year and preparing?
We have seen a big jump in the prices again in the past three weeks. During the summer months I drive a car but during the winter months I drive a dodge durango and I am dreading the price increase.
Not a good sign when the spokesman for AAA states that gas prices rising after October 1st has only happened once in the past 30 years. (And demand is actually down.)
I'll have to find the source again that shows the money supply has increased 120% in the past year and it generally takes about two years for the inflation to hit.
I hear the late 70's, early 80's were brutal years for interest rates when the Fed had to control inflation. (Don't remember... too young and I lived in Germany anyways to know / care at the time.)
As always... advising clients to buy near where they work if all possible.
You are certainly right but you need to keep in mind that this is a pretty clear indication (and the real purpose of this post) that the value of the dollar is going down the tubes due to all of the spending / borrowing and printing of money. Only one other time in the past 30 years have gas prices gone up after October 1st.
If this continues... wait till next Summer. I certainly remember seeing all of the empty businesses last time gas hit $4.00+ a gallon and unemployment is a lot higher this time around.
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Oil & gas prices probably won't go to high this winter, but may increase quite a bit next spring and summer.