The price of gas nationwide has topped $3.55 a gallon and crude oil is at $116 a barrel according to the Oil Price Information Service and AAA. Experts also suggest that the price of gas increased steadily throughout the past couple months due to the refineries switching from winter to summer grade oil which is less polluting.
Some Analysts predict that gas prices will become stationary in time which PUMP N’ GO disagrees. And of course, the oil we use is still being traded heavily in the commodities market and investors continue to hedge against the weak American dollar by betting more on crude oil which makes the price of crude go up even higher.
However, recent events such as Inflation growing gives the U.S. Federal Reserve reason not to reduce interests rates. At times, the Federal Reserve increases interests rates to make the dollar stronger. But increasing interests rates led to the recent debacle of the foreclosures market, a recession, a war in Iraq & Afghanistan and a slow down economy which is leading us into a recession.
To top it off, the U.S. Congress held a debate about the surge in gas prices today. We wonder if anything positive will come out of that in helping the consumer pay less at the gas pump. Maybe price controls on gasoline would help nationwide? What do you think?
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