I said yesterday that oil may pass $50 per barrel, but I didn’t know it would take just one day to occur. That’s what happens when the Fed announces it will print a few hundred billion more to buy debt. The weaker dollar sent dollar-denominated commodity prices up, with oil reaching above $51 per barrel.
For our prices at the pump, it looks like a return to $2 per gallon gasoline nationwide is in the cards. Prices would need to rise another seven cents per gallon from today’s $1.933, an easy sum if wholesale gasoline stays above $1.30 (it climbed above $1.43 today). This higher price for oil can help lower carbon energy sources such as wind and solar compete while they figure out more ways to lower costs.
Another commodity that skyrocketed in price today is natural gas. But I will save that story for tomorrow with a discussion of tomorrow’s oil and gas rig count.
Onwards in the Sustainable Energy Transition-
Tags: 2009, gas prices, Oil, US dollar