Friday, August 21, 2009

Oil Hits 2009 High Above $74, Eyes Fed Speech

Oil Hits 2009 High Above $74, Eyes Fed Speech -

Now, this doesn't make any real sense to me. I understand that the economy is on the mend according to analysts and that the dollar is stronger against the euro. However, I don't understand why gas prices are going up again.

According the Fox News article, "As yet, there were few signs of recovering U.S. fuel demand. Freight traffic across North America fell 17.9% in the week ended Aug. 15 from the same 2008 week, a trade group said on Thursday in a weekly report." Given that, Americans haven't started driving all over the place and they aren't buying SUV's like crazy again.

Everyone agrees that our economy is driven by petroleum. If the gas prices continue to go up, the so-called recovery in the economy will stall and falter. It will drive us further downward. I feel that the economy has to be nurtured along for a bit before gas prices go up. If this trend in gas prices continues its upward climb like last summer, the economy will tank again. (No pun intended.)

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