Gas prices hit 5th straight record; oil falls [Archive] - SmokinVette.com Forums

: Gas prices hit 5th straight record; oil falls


vettegirl2007
05-12-2008, 06:59 AM
Found this in CNN Money this morning:

The price for a gallon of gas sets a new record high at $3.718, according to AAA. Crude prices tumble as the dollar strengthens.

NEW YORK (CNNMoney.com) -- Retail gasoline prices increased for the sixth straight day and hit their fifth consecutive record, auto group AAA's Web site showed Monday.

The national average price for a gallon of regular unleaded gasoline rose to a new all-time high of $3.718, up 1 and one-tenth of a cent from the previous day.

Crude prices, meanwhile, tumbled on the stronger dollar.

Drivers now pay 21% more for a gallon of gas than they did a year ago, when a gallon of gas cost on average $3.064, according to AAA.

Consumers have been pinched at the pump as the price of a barrel of crude oil has doubled in the past year. Crude prices settled at a record close of $125.96 a barrel Friday after breaking $126 a barrel earlier in the session.

Stronger dollar. Crude futures pulled back from those record levels as the dollar gained Monday. U.S. crude for June delivery fell $1.32 to $124.64 a barrel on the New York Mercantile Exchange as the dollar gained.

When the dollar is weak, investors often look to commodities like oil as a hedge against inflation. But a stronger U.S. currency can reverse that trend.

The euro was quoted at $1.5405 early Monday, down from $1.5480 late Friday in New York. The dollar also strengthened against the yen, rising back above the ¥103 mark.

Venezuela. The advance of oil prices at the end of last week was spurred by evidence that Venezuelan President Hugo Chavez has offered assistance to Colombian rebels. Recovered documents from a slain guerrilla fighter show that Chavez has offered assistance to Columbian fighting rebels.

Some U.S. lawmakers think that the White House should add Venezuela to a list of state terror sponsors, including North Korea, Iran, Syria, Sudan and Cuba. If the U.S. were to add Venezuela to that list, however, the country could cut off oil experts to the U.S.

Venezuela is a key supplier of oil to the U.S. and decreasing supplies of oil to the U.S. would push up the price of oil.

China. Some analysts expect that China's trade data for April will move the price of oil.

China's inflation rose in April to the highest level in a decade, according to a government report released on Monday.

The government also released data on Monday showing China's trade surplus fell by 1% in April. Less money flooding into the economy could ease inflation in China.

-- from staff and wire reports

vettegirl2007
05-12-2008, 07:01 AM
So what I'm picking up from this is that the US dollar might be turning around? If that is the case then fuel prices might start turning around?

Z06dreams
05-14-2008, 07:22 PM
So what I'm picking up from this is that the US dollar might be turning around? If that is the case then fuel prices might start turning around?

If I read it rite it means the US will become more powerful again and the whole economy would come closer to pulling out of resesian there for causing the housing market to turn around etc.......:party:

Zone Killer
05-15-2008, 12:49 PM
I'll believe it when I see it. I really don't see the gas prices going down regardless if the economy gets better. :eek:

Steve@Subthump
05-16-2008, 07:17 AM
If I read it rite it means the US will become more powerful again and the whole economy would come closer to pulling out of resesian there for causing the housing market to turn around etc.......:party:

Not hardly. The dollar is in a long-term downtrend. In any trend, prices can move up and down. The above is just a temp. spike but the downtrend is still intact. Take a look at this article. Look closely at the dollar chart and the related paragraph. http://www.financialsense.com/fsu/editorials/willie/2008/0515.html

This is why everything we buy keeps going up. It's because the dollars we have aren't worth **** anymore. They have lost a lot of their purchasing power and cutting interest rates causes inflation that only makes prices go higher. It's a vicious cycle.

On the other hand, silver and gold continue to shine. I started watching gold when it was around $300 per oz. In march, it spiked clear up to $1,033 per oz. To get a feel of these markets--if you would have invested $50K in gold around 2003/2004, today that 50 would be worth over $172k. Certianly a smart investment in my mind.

I don't wanna preach to the choir too long, but I certianly adivise adding some precious metals to your portfolio as a safe-haven for your wealth. Dollars are printed paper with no backing and their value is disintegrating by the hour. Read the very last paragraph in that in article. I think things will get much worse before they get better. If you want to make money rather than watching your $ buy less and less, own gold (and silver). Btw, notice the gold and silver charts. They are coming off a nice correction and now is a good time to buy back in.

Mister_Scary
05-16-2008, 12:22 PM
I was almost on "E" and filled up today at $4.05/gal for premium. It was $38.00 even. I don't see the big deal. I see less traffic in my future and a lot less junker cars polluting my roads. Life is too short to be stuck behind that electric Yugo. I've got a massive carbon footprint to make here, people!:patriot: