Gas prices crosses $4 mark where as there is some relief for oil prices.
On a stronger dollar the prices for the oil witnessed a downfall and talks have been conducted on the rising oil prices. On the other hand the price for gas is witnessing a constant rise leaving behind the $4 mark. After Mr. Paulson who is the Treasury Secretary gave a comment that he is not denying the interference to make the American currency steady the dollar witnessed an improvement as compared to the euro.
Seeing the rising prices of the oil all the countries engaged in producing oil were called for a meeting by Saudi Arabia. One of the Saudi minister said that they will be working along with OPEC for the supply of the oil in the present times and in the near future also. He went to add that the current rise in the price is groundless.
On New York Mercantile Exchange the price of the crude crashed down $4.19 to stop at $13.44 a barrel. It was on Friday that the oil witnessed a record breaking rise of more than $9 in just one day, but on the other hand the gas didn’t stopped and kept on rising. According to Oil Price Information Service and AAA the average price of the gallon across the nation rose by more than 1.6 cents and reached to $4.021. Even though some parts of the country paid the price for weeks now but it was on Sunday that average crossed $4.
Mr. Tom who is a chief oil analyst and publisher at Oil Price Information Service in Wall, New Jersey was of the view that if the oil stayed near $138 a barrel you can still expect the gas prices to rise in the coming days. According to a spokesman of AAA the prices will still rise to 2 to 3 cents. With the gas prices going up where some of the drivers have cut back on the other hand the gas producers will have to raise the prices seeing the prices of the crude oil also increasing.
The rise in the gas prices has already made the drivers to change the type of cars they used to drive or they are planning to buy. Seeing all this General Motors has also made an announcement last week that that they will be shutting down their four units engaged in producing pick-up trucks and SUVs.
It will be really a costly affair if you have a SUV which costs around $90 to fill it up not to mention if you have to pick and drop your kids to school. Around Memorial Day the prices of the gas often witness a raise and then move back in the summer time. After last week when Mr. Trichet who is the President of European Central Bank made a comment on the rising interest rates in the month of July to face price rises the sharp rise was witnessed. This made the euro to easily rise against the dollar.
In an interview Mr. Paulson said that he don’t deny the fact that they are interfering to make the dollar stable but he refused to make any comment on what will be the government reaction towards this issue. Mr. Paulson’s comments made an impact on the euro to decrease sending oil crashing down.