Here & There Column 11-9-10

Gas Prices A Drag On Economy

It's just what we need folks........as many struggle with the economy, loss of jobs and this recession......we are now seeing over $3.00 per gallon for regular at the gas pumps.
The prices have sort of been sneaking up in the past month and you now notice the difference when you fill it up.
We are told that the price of crude oil and retail gasoline tend to move together and then there are the so called analysts who give the impression this is all happening because traders and investors have been in a lets see what's going on mode with some serious looking at the midterm elections.
Then we are hit with the statement that oil and other commodities priced in dollars become more affordable for buyers with foreign currencies as the dollar weakens and then comes the very blunt statement that oil prices rose as the dollar lost ground against the euro and other foreign currencies.
The executive director of the New York State Association of Service Stations believes that gasoline prices will continue to rise until inventories start to rise and as long as service stations do not lose volume the prices keep going up.
Can there be any good news is this.........Patrick DeHaan, senior petroleum analyst for GasBuddy.com says the economy is slowly improving and any time the Dow moves up or down 100 points then gasoline prices follow.
DeHaan indicates that rising inventories would not by themselves push prices lower and he believes gasoline prices have peaked and the regular price of gasoline per gallon will settle into the $2.75 to $3.00 range, and, he added that he does not see prices staying above $3.00
My local gas station operator said there has been a lot of complaints and his customers do not seem to be taking the higher prices in stride.
The fact that it's only been a short while since a gallon of unleaded regular cost that much does not sit well when pushing the gas pedal has gotten more costly.
Today's economy does not support this increase and it probably would not hurt to let our newly elected officials know our feelings.