
So I leave for work this morning, get to the gas station where it's a whopping $3.09/gallon and I think to myself oh, well the other day it was $3.01 at the gas station near work, I'll just go there. I get to the gas station by work and it's at $3.11. Meanwhile i'm on empty in my inherited stupid green sedan. I decide to bite the bullet and pay for at least some gas so I can at least get home and I realize I don't have my wallet.
(don't worry i'm not stranded, i borrowed some $ from a co-worker who i'll pay back tomorrow)
However, this little saga got me to thinking: How did gas prices go up 10 cents in less than two days. So i looked it up.
Turns out for the last three days the price of crude has reached increasing record highs and they predict it'll go up to $80 per barrel before the end of June!! (It's currently at $72, i think)
Also: Bush has halted the environmental law that was passed forcing gas refineries to mix gasoline with ethanol to reduce air and water pollution to try and reduce gas prices.
Also: The average retail price of gasoline nationwide is $2.80 a gallon, though stations are charging more than $3 a gallon in many parts of the country.
Excerpt from MSNBC article:
The biggest factor underpinning higher gasoline prices is the roughly 38 percent rise in crude oil costs over the past year. On an inflation-adjusted basis, oil prices would have to rise above $90 to exceed the all-time highs set a quarter century ago when supplies became tight in the aftermath of a revolution in Iran and a war between Iraq and Iran.
Analysts said the market psychology would likely remain bullish until there is either a significant dropoff in demand or resolution to a variety of geopolitical uncertainties, particularly the West’s nuclear dispute with Iran and output disruptions in Nigeria.
“The worries of Iran won’t go away any time soon, and in that sort of environment very few people are willing to be short on oil,” said Tobin Gorey, a commodities analyst with the Commonwealth Bank of Australia in Sydney.
Read more
here