From Deseret News archives:
Gas hits new high $3.47 per gallon
Utah's price is 15 cents below national average
The forces contributing to the ongoing increase in gas prices it cost $3.01 a gallon May 1, 2007 are local, global and even seasonal.
While gas in Utah is climbing toward $4 a gallon, it is still 15 cents lower than the national average of $3.62 a gallon.
Seasonally, gas tends to be more expensive in the summer because refiners mix alkylate into it. The additive is necessary for summer gas blends, helping curb pollution from tailpipes and slowing gas evaporation in hot weather.
"It's a more expensive blend," said Rolayne Fairclough of AAA Utah. "But in itself, that's certainly not the reason gas prices are high."
Also contributing to high gas prices is the declining value of the dollar in comparison to other currencies. When the price of the dollar is weak, commodities such as oil gain value.
A jump in the dollar and the end of an oil workers' strike in Nigeria sent crude prices falling Thursday as speculators who had driven crude futures to nearly $120 pulled out of the market. As the dollar has strengthened this week, oil futures have dropped more than $7 from their highs to their lowest levels since April 14. On Thursday, light, sweet crude for June delivery fell 94 cents to settle at $112.52 a barrel on the New York Mercantile Exchange, after trading as low as $110.30. Meanwhile, the euro bought $1.5457 in afternoon trading, down from $1.5642 late Wednesday.
Analysts caution that oil's swoon could be temporary. The dollar's protracted decline has been a major factor behind oil's rise from about $64 a year ago, and future dollar weakness could easily push crude futures above $120.
"Gas prices are high because the barrel of oil is so high, and gas prices are high because the dollar is so weak, and the stock market is weak," Fairclough said.
The economic forces of supply and demand are also at work, but not in the usual ways.
Recent comments
For the record, the maximum output potential for ANWR is about...
ANWR | May 2, 2008 at 4:29 p.m.
"If all those environmentalists would let us drill in Alaska, we...
G | May 2, 2008 at 12:43 p.m.
Gas here in Montana is around 3.50. I still see people buying full...
Bruce | May 2, 2008 at 12:41 p.m.
- High school girls soccer: All-region 8:26 p.m.
- More than 2 bars per block in S.L. 8:25 p.m.
- Police: Dad spanked son over veggies 7:55 p.m.
- ABC in talks with Cuomo 7:50 p.m.
- FBI: pair tried to extort John Stamos 7:47 p.m.
- Penny, Cardinals complete 1-year deal 7:47 p.m.
- Beyonce talking Vegas shows 7:46 p.m.
- NFL fines Ochocinco $30K 7:46 p.m.
- County may cut down on overtime 7:44 p.m.
- Service honors late Wizards owner 7:41 p.m.
- BYU football: Bronco weighs in on Hall
- Yet again, we learn BCS is a big joke
- Storm pounds Utah for 2nd day
- Cougars in better mood about bowl
- Williams' late jumper tops Spurs
- Andersen apologizes for Jordan hoax
- Ranking the bowl games
- $2M error could mean layoffs
- Witness: Mitchell stalked victims
- Dr.: Mitchell seeks signs from God
- Y. profs: Beck not all-knowing
277 - Letters: Global warming a lie
212 - TCU to play Boise in Fiesta Bowl
205 - BYU football: Bronco weighs in on Hall
161 - Cougars going back to Vegas
147 - Utah/BYU rivalry can be more civil
141 - George lost in rivalry hatefest
119 - Andersen apologizes for Jordan hoax
104 - Ed Smart 'appalled' at testimony
101 - Harpring's NBA career is over
99
Pittsburgh Post-Gazette writer Joyce Gannon offers the following advice...
Wow. That's a pretty crooked way to sell tickets. I'll be skipping future...
Next week will be a huge week for the Bengals. With games against West...
The government warned us about this (Global Ice Ige warnings in 1975).
why leave Bonner open? has he not burned us "enough" times? You guys are...
Now I'm not down with bruising or beating your kid, but parents need some...
Al Gore did take initiative in creating the internet. He has never said he...
Taxes hurt.
Dick is exactly right. No way the BCS geniuses wanted to let TCU anywhere...
Mendenhall, his assistant, Mad Max, and Jorgensen...the Four Musketeers....
Yes, Amatuer Radio operators are called Hams.....

