Oil prices rise amid global economic worries

From the Washington Post:


With the world economy so weak, why are oil prices so high?

Economic crisis grips Europe, slow growth plagues the United States, and China’s breakneck expansion shows signs of a slight slowing.

 Euro zone leaders aim to stem the continent’s debt woes as protesters take to the streets in some countries to show their dissatisfaction with austerity measures.

Yet the global price of oil might set a record this year as consumption creeps up and world output struggles to keep pace.

The Energy Information Administration said this week that the average retail price of regular gasoline is the highest ever recorded during Thanksgiving week, 49 cents a gallon more than this time last year. AAA says this year motorists are on track to pay a record $490 billion for gasoline, burning a hole in consumers’ pockets.

Recently, prices at the gas pump have tapered off. AAA says that gasoline prices have dropped about 12 cents in the past month to a nationwide average of $3.33 a gallon for regular, giving holiday motorists some reason to give thanks.

But this season is usually a period of relatively weak gasoline demand, and retail gasoline prices are still high by historical standards in the United States. Although U.S. motorists seem to change their driving habits most when gas prices near $4 a gallon, the EIA statistics show that consumption this month has been as low as or lower than any November since early in the previous decade.

Moreover, the prices of other petroleum products have been heading higher. With cold weather starting to set in, home heating oil prices stood at $3.94 per gallon as of Nov. 21, an increase of 83 cents a gallon from a year earlier, the EIA said. The higher prices will primarily affect homeowners in New England, where heating oil is still commonly used.

Diesel prices have climbed, which analysts said was a sign of improved economic activity and constraints on refiners because of the government’s low sulfur requirements. A recent Barclays Capital report said that total miles driven by U.S. truckers was up 3.5 percent over the year before.

Diesel prices Wednesday stood at $3.98 a gallon, up 13 cents from a month ago and up 80 cents from a year ago, AAA said.

Diesel prices, closely linked to the trucking business, suggest a disconnect between the economy and the glum mood of consumers.

“The sentiment indicators are gloomy, but the production indicators are pretty good,” said Adam Sieminski, chief energy economist at Deutsche Bank. “If you add up what consumers are spending, the numbers are higher than last year. If you ask them how they feel, they say ‘terrible.’ ”

Behind the retail prices of petroleum products lies a global crude market that is still roiled by geopolitical turmoil and economic uncertainty.

The benchmark West Texas Intermediate crude oil this year has averaged more than $94 a barrel, only slightly below the record year of 2008 before the recent recession, and nearly 50 percent more than levels just five years ago. The more widely used benchmark Brent crude in London has cost more than $100 a barrel since early February. On Wednesday, it fell $1.81, or 1.7 percent, to $107.22 a barrel for January delivery after pessimistic economic signs in Europe.

Gas Prices Soaring!

According to the Oil Price Information Service, U.S. drivers spent an average of $347 on gasoline during the month of February, which was 30 percent more than a year earlier. This represented 8.5% of median monthly income. So what is going to happen when gas prices go even higher? Sadly, the average price of gasoline in the U.S. has risen another 4 cents since yesterday and it is likely to go much higher from here.

If gas prices are eating up your family budget, what is the answer? Fuel Direct! Fuel Direct members are currently saving between $0.40 to $0.90 per gallon of gas. This is at today's prices. As gas prices go up the savings per gallon go up.

Go to www.fueldirectsavings.com for more details on how you too can save money on gas and earn cash!

Save Big On Gas At The Pump With Fuel Direct

People using Fuel Direct's XP3 have been experiencing some pretty amazing results. XP3 sales of over 3 billion to the commercial market speaks volumes on it's effectiveness.

So as we put XP3 in our tanks, what is the typical results we might experience. We surveyed several XP3 users below as they tested XP3. There was a range of savings from $.46 per gallon to $1.04 per gallon saved. Wow!

The results are below:

FuelDirect Business Member Cost

Vehicle Type Miles Net Savings per gallon* Total Savings/Tank
Erik C 2002 Acura TL (17 gal tank) 161,000 $.64 / gal. $10.88 per tank
Lowell P KIA Rondo (15 gal tank) 60,000 $.80 / gal. $12.00 per tank
Jenna T 2004 Dodge SRT4 Neon (12.5 gal tank) 120,000 $.81 / gal. $10.12 per tank
Brian S Dodge ½ ton Crew (22 gal tank) 120,000 $.92 / gal. $20.24 per tank
Doug B Ford E350 1 Ton Van (26 gal tank) 119,000 $.88 / gal. $22.88 per tank
James E 2009 Jeep Liberty (19.5 gal tank) 70,000 $.68 / gal. $13.26 per tank
Mike S 2005 Cadillac CTSV (16.9) 140,000 $1.05 / gal. $17.74 per tank
Jamie H 2006 Silverado 4x4 Z71 (31 gal tank) 220,000 $.50 / gal. $15.50 per tank
Randy R 1995 Mitsubishi Wagon (18.8 gal tank) 156,000 $.46 / gal. $8.65 per tank
Jon T 2005 Dodge SRT4 Neon (12.4 gal tank) 115,000 $1.04 / gal. $12.89 per tank
David L 1996 Acura RL (18 gal tank) 165,000 $.62 / gal. $11.16 per tank

*FuelDirect Business Member cost for someone who has cycled in the payout matrix.

TO learn more about how you can save big at the pump to go to: www.fueldirectsavings.com