Monday marked a new record high trade for a barrel of gasoline. With a barrel of oil going for $103.95. This beat the previous record which was set in April 1980 at $103.76 . The article below goes on to tell us that the reason why gas and oil prices have surged is because the value of a dollar is declining. Since oil is priced in U.S. dollars on the international market, traders are selling their dollars and buying euros to take advantage of the difference in interest rates between the United States and Europe. A falling dollar tends to buy oil prices in part because consumers using stronger currencies than the U.S. dollar can pay more per barrel without feeling much effect at the gasoline pump. In the past 8 years oil prices have more than quadrupled and are not planning on dropping any time soon. With oil setting fresh records, many experts expect gasoline to approach $4 a gallon this summer. Last year’s all-time record of $3.23 a gallon is going to be demolished. With oil prices rising the way they have been for the past 8 years I am not at all surprised with this record being broken and I am sure it will be broken again very soon. So pull out your wallets and start counting your change because by the looks of things this is going to be an expensive summer to be driving an automobile.
http://www.nytimes.com/2008/03/03/business/worldbusiness/03cnd-oil.html?hp
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