Oil prices: Time for concern?

Oil prices jumped above $79 a barrel to a 2009 high Monday in Asia.

They have been creeping up recently with news of the beginnings of an economic turnaround. But if they start rising too fast, they could affect the pace of the recovery.

In Atlanta, gas prices average about $2.40 a gallon, which is up from about $2.25 a gallon a week ago, according to Atlantagasprices.com. Still, they’re considerably below the $2.76 a gallon of a year ago.

What do you think is driving up the price –  our declining dollar or demand? Our government’s piling on more debt or greedy oil companies?

Also, are you starting to look at the pump prices more closely? Doing anything differently?

Or are there more important things to be concerned about right now with unemployment at 10.1 percent in Georgia?

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19 comments Add your comment

jdawg

October 19th, 2009
7:31 am

Yep, will just buy less….I think the general public will respond…just because a few control the price. They have decreased production of gas just for that reason…again, will try to buy less….

taxman kenneth

October 19th, 2009
7:36 am

Iguess the oil companies have seen the price reasonable too long so they decided to cut production to drive the price up. They do as they please with no one in Washington taking any action to try to stop them. We, the american people are the only ones who can control these high prices by driving less and trying to combine our trips.

gary

October 19th, 2009
7:37 am

Any sign of even the slightest good news, fictious or not, sends oil higher. Ther’s a real disconnect between Wall Street and main Street. Main Strret folks are really hurting why the big shots make billions. Watch for a major correction in the stock market, with major drops in stock prices. As for me I bought a mororcycle, 63 miles agallon, I’m doing my part.

Jim

October 19th, 2009
7:45 am

Of course they are, as the heating season starts and driving decreases, we have to change directions to assure that we get nailed for OIL’s big profits. Where is that CHANGE we’ve been promised?

clyde

October 19th, 2009
8:14 am

I can easily cut my driving in half ,again.I’ve been a bit lax lately on conserving fuel.I’m using about 12 gallons a week and I can easily cut it to six.My wife and I were actually thinking about going to a restaurant this week,but not now.We’ll go back into our recession shell.It was enjoyable figuring just how many things we could do without.I have a jar here into which I put the money I would normally have left a waitress for the last two years and there’s a large sum of money in there.It’s approaching $1500.I’ll count it again next year at this time.

08fx4

October 19th, 2009
8:50 am

High oil prices got us where we are today … can nobody else see that ?

Road Scholar

October 19th, 2009
8:54 am

And you are surprised that gas prices as well as oil are on the increase? We better get those tax credits and incentives for alternate fuel development going while setting goals for the % of our energy needs to be alternate fuel. Europe has done it. South America has done it.

Joe

October 19th, 2009
8:55 am

Yes, we all need to go back into our recession shells because gas prices are GUARANTEED to be between $3-5 per gallon by Christmas. Yes, $5 (five) per gallon. I’ve been expecting it all year. When they said that June’s crude price was going to be this year’s peak, I LOL’d and said so many times that they were lying and…yes, I was absolutely correct. My out-of-town trip next month is now cancelled and my travelling will be almost completely eliminated from this day forward. We’re going into a depression. GET READY FOR $150-200 CRUDE, EVERYONE!!!

THE TRUTH

October 19th, 2009
9:21 am

Jim, Just remember that Washington can promise you the world –and do — but can’t deliver. They say what people want to hear, and for some unexplainable reason people buy into it, over & over again through history. Washington wants control because it gives them power. Once you surrender control to them you pay dearly if you try to get it back (see: coming to America in 1700’s). Why should we have faith in government seeing how they have bankrupted Social Security, Medicaid, Postal Service, etc. All you will have left in 2012 is ‘CHANGE’. And you can take that to the bank.

Brad Gorr

October 19th, 2009
9:22 am

Oil prices go hand in hand with economic recovery.The more we spend on gas and oil byproducts the less we have to spend on other hard goods which results in smaller orders to factories which result in layoffs…hence higher unemployment!Washington knows this but they stand by and say the economy is getter better.Where,in Saudia Arabia?

All of you who have responded so far...

October 19th, 2009
9:36 am

…have no clue re: the rise in oil prices. It has nothing to do with supply and demand these days or the fact that winter is coming. Right now, if you would do some research before commenting about the conspiracy theory, you would know that supply is UP and demand is STILL down.

The cost shift centers strictly upon the devaluation of the American dollar; when it goes down the price of anything imported goes up. Hence, the shift in the cost of oil.

However, I do believe that the oil shieks and others in the oil producing countries are at the head of the class in causing the value of the dollar to decline. They will do anything to keep that price high, and when the U.S. decreased their oil consumption they had to do something to keep their profits high – hence the current state of affairs, and Obama is not helping by continuing to print dollar bills a Monopoly money.

But, as all the anti-Bush people said the last 8 years, whenever the price of oil went up, it’s all Bush’s fault, still – NOT.

Fred

October 19th, 2009
9:43 am

Agreed, it’s not all Bush’s fault. However, he makes a great scape goat and it’s convenient to blame everything on him. The new messiah gets a free pass.

George

October 19th, 2009
1:18 pm

Oil prices are the only thing that will bring the economy down and force us into a W shaped recovery..another recession.

Brad Gorr

October 19th, 2009
1:38 pm

I agree that oil prices have gone up due to $ devaluation but that is not the major cause.The cause that I speak of is one that begins on wall street.Our government continues to let these clowns swap oil futures without taking delivery of the actual barrels of oil.This causes greater speculation thus prices go up when supposed “good news”is heard.It turns into a paper pushing game.Supply and demand is a factor also….the Chinese put thousands of new drivers on their roads daily thus their consumption increases and world supply dwindles.We are not the only ones who use vast quantities that we cannot supply ourselves!

David Gatch

October 20th, 2009
6:56 am

Speculators are doing the nation a disservice, it was high gas prices that PUSHED the economy over the edge and these profiteers are little more than traitors. Obama needs to remove his head from his rear end, its the economy stupid he’s AWOL on the real issues.

Unemployed Granny

October 20th, 2009
7:23 am

This is just another nail in the coffin of those of us who need it the most…and can afford it the LEAST.

Brad Gorr

October 20th, 2009
4:14 pm

Yes I have done the research!Supply is up and demand down…..that doesn’t matter to traders on Wall St.What they rely on is false news of the economy getting better….resulting in the stock market going over 10,000 again due to the frenzy of speculators.Oil futures are up no doubt due to this “great” news.More people get into the game then thus driving the futures up.It can go the other way also but that depends on gloomy economic and employment news….remember when foreclosures and unemployment were at their height?Gas was under 2$ a gallon then wasn’t it??Don’t forget that the $ is not the only world currency to be devalued…..the Saudi’s took a hit too by investing heavily in our real estate markets and large banks(Citibank)…they don’t want our economy to collapse and neither do the Chinese,Japanese,etc,etc as ALL THESE COUNTRIES own a large piece of the “American Pie”.Research?I suggest you check out some of the 60 minutes news stories that were aired in the last 6 months.

James F.

October 21st, 2009
5:42 pm

Yes when Wall Street discovered they could manipulate the price of oil to make billions the consumer became the loser. To bad supply and demand has little to do with it today. The oil producing countries can cut production, the gas end of the business shuts down a plant or two and the speculators on Wall Street take information to force prices up or down. Maybe we all should invest in oil futures to depress the income opportunity of these bastards. And where is our savior BO on this. Don’t be fooled by the stock market because it will soon take another hard fall as consumer confidence drives people back to investing in the market. Then when it get’s that money back into the system they will crash it again and the super rich will gobble up the bargain stocks as the person saving for retirement bails out at a loss! Who can we trust?

Brad Gorr

October 22nd, 2009
9:09 am

No one in government,high finance,Wall St.,or foreign countries….did I leave anyone else out??