Oil Prices Top $137 Per Barrel

June 30, 2008

Oil prices keep rising, breaking records seemingly without end. This Friday, the market experienced another big surge in the price of oil. On Friday, the price of oil went up by a shocking $10 in one day, such that oil cost more than $137 per barrel before the day was out. Friday’s increase comes on the heels of a similarly huge increase on Thursday, such that Thursday and Friday comprise the highest two-day increase in the price of any one commodity in the entire history of the New York Stock Exchange. On Thursday, the price of oil had increased by $5.49 over the course of the day.

The current price of oil, at $137.70 per barrel beats the previous record for the price of oil, $135.09 a barrel, set on May 22.

Part of the reason for the high oil prices has to do with the decrease in the value of the American dollar. Non-American speculators with more powerful currencies are looking to buy oil, taking advantage of the decrease in the value of the dollar. Ironically, the price of oil – so deleterious to America’s economy right now – may go up to $150 per barrel by July 4, that most American of holidays, according to financial analysts.

This translates to problems for the average car-loving American consumer. Right now, gas stations charge an average of approximately $3.99 for one gallon of regular unleaded gas. In some places in America, drivers are being charged over $4 for one gallon of gas. With increasing oil prices, this situation is only bound to get worse, with gas prices of $4.25 a gallon a likely possibility.

James Cordier of Tampa Florida, president of Liberty Trading Group, says there isn’t much that the average American can do. “Unfortunately, drivers cutting back isn’t going to lower the price of gasoline any time soon,” Cordier warned.