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Gas Rises, Dollar Falls

Published 06/28/08 Jeff Bennett - Print Article
E-mail - editor@economyincisis.org

Friday – for the second straight day – oil prices continued to rise, hitting a record of $142 a barrel. The dollar continued to erode in value against the euro, contributing to Friday’s rise in price.

Experts attribute the expensive price of oil to the declining dollar, continual consumption by developing nations, speculators and so forth. Americans are changing patterns and habits to reflect the escalating price of gas, but there is only so much we can do as the value of the dollar drops, causing the price of all commodities to grow. There is no quick fix to this solution, but it is now our responsibility to become aware and make careful decisions in the future.

Source Voice Of America:

World oil prices surged to fresh record highs above $142 a barrel Friday as Asian share prices plunged. A sell-off in Asia followed Thursday's steep three-percent decline in U.S. stocks. U.S. shares posted mixed results in Friday's afternoon trading.

…

The spike in oil prices comes after the president of the Organization of Petroleum Exporting Countries said Thursday that he expected crude prices to go as high as $170 a barrel in the next few months.

Oil is traditionally priced in dollars and prices have about doubled in the past year in part due to the declining value of the dollar.

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