Why are gas prices on the rise again?

Answer 1

Gas prices are on the rise for a multiple of reasons as follows

The current president signed an order placing much of the oil rich areas in America and Off Shore unavailable for drilling or exploration. This ban on drilling here in USA land or ocean areas threw the USA into the situation to buy most of our oil glogally. Since the USA was forced back into competeing on world oil markets the price for crude is rising.

Unrest in the oil rich regions of Russia and Middle East contribute to the volitility in the oild futures market. Russia is again flexing it's military muscle which gives rise to instability in their availablity as a supplier thus forcing a "scare" and buyers are willing to pay higher prices.

The instability in the US Dollar. All the government debt spending and the massive round the clock printing of money has started to devalue the US dollar. Since the dollar is only valued on market strength and printing more dollars that have no real value the entire global economy is begining to be scared of the US dollar. World markets ae begining to view the USA as a drunk borrowing (printing) more money to support a habit (spending) that even thought hey have the best sounding promises, they have no intention or ability to repay. China and Saudi Arabia hold much of the new debt and our president will do what ever they tell him so he can continue to borrow more money we have to repay.

Oil companies are leary of what the current president and congress is going to do. There is a fear of taxes increses and Cap and Trade so the companies are going to make their money before the taxes hit (which by the way,will be passed on to guess who, me and you)

Summer season-probably the only uncontrollable in the socio-polital-financial equation. Memorial Day is coming and people drive more during the summer which increases demand so they raise prices.....because they can no other reason, just they can and do. Ever notice how maybe they all rise together because they all agree?

On the bright side if the Arabs start under cutting each other again by increasing production or lowering their prices against each other hen prices will decline. If the president ever starts to care what happens to us (fat chance) we will be allowed to drill for our own oil here.

You can get an idea of where gas prices are going by watching sweet crude future prices on the exchange. Google Sweet Crude oil price chart.

I understand this is not a very pretty picture but that is where it is.