Oil Prices Rise Thanks to Weak Dollar, Supply Cut

When the U.S. economy began its freefall in the early fall of last year, most people took solace in falling gasoline prices, which were meeting the fears of significantly reduced consumer demand. Unfortunately for consumers, the falling value of the dollar and a slight turnaround in the global economy has oil on the rise again.

On Dec. 22, oil was trading for about $30 a barrel and regular unleaded gasoline was retailing for well below $2 a gallon in most states. Recently, oil has climbed above $65 a barrel as the summer driving season approaches. The national average today, according to AAA’s Fuel Gauge Report, is $2.51 for regular unleaded.

Another cause for the increase, experts say, is a significant decrease in supply, as refineries cut their outflow by 5.4 million barrels, according to a report released last week.

To read more about the recent uptick in oil and gas prices, click on the source.

Source:

BusinessWeekSizing Up the New Oil Spike