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Inflation Or What?

October 28, 2008

So this probably won’t be a very long blog entry, but I’m still curious.  Today as we were driving down the road (trying to enjoy that while we still have money since we don’t have jobs at the moment) and one of the lower priced gas stations was selling regular unleaded for $2.29.  Wow.  I mean seriously?  We had another gas station selling for $4.09 at one point a couple months ago!  That’s ridiculous!  Don’t get me wrong, I am completely excited to see gas get so low (knowing that we are about to move to California where the gas is on the higher end of the spectrum).  I just don’t understand how it got so high in one year and then a few months later drops by almost two dollars!  What?  Now it is true that I don’t follow the government and new much anymore (other than what is on the Yahoo! screen, news commercials between games or someone tells me) so I don’t really know what the heck is going on!  How is this happening??!?!??!  Did we finally assassinate someone in the Middle East and lower the prices?  Did the crazy man in Venezuela finally kick the bucket?  Did we lock up all the CEOs of the gas industry so it is going back to being fair?  Did the oil fairy just leave a bunch of extra barrels on our doorstep?  Did we employ Tom Cruise to use his witchcraft on it?  I don’t know.  Please someone explain this to me (so I don’t have to go do research…please?…I’m feeling lazy at the moment)!

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2 Comments leave one →
  1. Kara-Kae permalink
    October 28, 2008 1:17 AM

    The gas people know we’re poor and they’re just trying to help us out. Hooray!

  2. October 28, 2008 3:09 PM

    First off a Barrel of Oil is purchased on the market in dollars.
    On July 11, a barrel of oil was $147.XX
    U.S. dollar vs the euro: 1 euro = $1.67
    U.S. dollar vs the pound: 1 lbs = $1.98
    U.S. dollar vs canadian dollar: 1 canadian dollar = $1.07

    Today, a barrel of oil was $62.77
    U.S. Dollar vs the euro: 1 euro = $1.26
    U.S. Dollar vs the pound: 1 lbs = $1.58
    U.S. Dollar vs canadian dollar: 1 canadian dollar = $0.78

    You think the economy here is bad? It’s much worse overseas, the value of their currency has fallen off sharply, cause the decline in Oil. Another argument would point to OPEC (The top 40 countries that produce 60% of the supply of oil) is worried b/c the U.S. government lifted a ban on offshore drilling (other than the Gulf). Now this Oil won’t even be available for another 5-10 years but it could supply the U.S.’s demand for oil for the next 150 years, and this worries OPEC b/c they want us to buy their oil, not produce are own.

    Another thing I’ve heard is China’s demand for oil has fallen way off since the Olympic games. And the 2 years they’ve spent building and getting ready, caused a need for a lot of Oil over there.

    One analyst predicts Gas will be below $2.00 by Christmas and under $1.40 in the spring time. Good times :-). Time to get out my monster truck!

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