Dollar Value, Oil Prices, and Energy Issues

Heidi Suydam — Thu, 21 Aug 2008 05:13:30 +0000

Some polls tell us Americans Want to Drill, others tell us Americans Don’t Think More Drilling Will Lower Gas Prices. Over the weekend there were reports of the dollar rising and gas prices dropping. Wednesday brought reports of oil prices increasing, the dollar weakening and prices still dropping at the pump.

The Orlando Sentinal reported:

At the pump, retail gas prices continued their decline, suggesting that cash-strapped Americans are still cutting back on their driving. A gallon of regular slipped another penny overnight to a new national average of $3.73, almost 10 percent lower than record prices of $4.114 a gallon reached July 17, according to auto club AAA, the Oil Price Information Service and Wright Express.

On Friday the discussion about the price of oil centered around OPEC’s recent report showing the demand for oil is down. According to the Baltimore Sun OPEC’s estimate of oil demand is summarized as follows:

In its monthly oil report, the organization forecast world appetite for oil this year overall will fall by 30,000 barrels a day. While forecasting demand growing by a daily 1 million barrels a day this year, and another 900,000 barrels in 2009, the report noted that world demand growth next year will also be “the lowest since 2002,” with demand growth from the major industrialized countries actually declining.

How will this affect the fight for Energy Independence in America?

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Dollar Value, Oil Prices, and Energy Issues