Who is to Blame For Higher Prices at the Pumps?

Tired of getting hammered by gas tank with crazy high gas prices? Me too! The price of oil is on each newscast with headlines screaming about the latest entry in oil prices. And most disturbed by the fact, after the headlines, this is only the beginning. How much will it then?

Who is responsible? Lets examine some of the reasons why you need more under the shell at the pumps.

This oil shell game is wrecking the lives of millions of people. If the voltagein the Middle East to blame? Is big oil companies, the empty laugh all the way to the bank, while on your budget? So if we have to thank for these wild price swings? Is it a battle between the traders to go long or short on oil futures contracts at big banks? Is this all connected to the Alberta Oil Sands?

The most commonly heard reason is that there is a huge increase in demand for oil by China and India in the explosive economic growth. CountriesProduction of oil justcan't keep up with demand. Even Saudi Arabia has recently announced that it has always supply to meet demand, and the market yawned.

Is there any truth to this argument? Of course. Is that important? No

The economies of going full tilt in recent years that has led to an increased demand for oil. The truth is that the U.S. accounts for about 4% of the world's population and 25% of the world's oil usage. However, this is not the only reason for the oil --Price increases painful.

The demand for oil, although not at 100%, as oil prices have risen over the past 11 months. What is wrong with this picture?

For more than a generation, the U.S. greenback affects the price of the goods. A strong U.S. dollar for most times led to lower oil and gold prices. The incredible weakness of the dollar has hit unprecedented highs in commodities led. Commodities are moving into U.S. dollars and prices to compensate for changesValue of the dollar.

A lower U.S. currency has resulted in oil and gold moves in the price, so you'll always hold at the pump. Since September 2007, Fed Chairman Ben Bernanke that interest rates 7 times, with the largest reduction occurring these cuts in 2008. In the same period, the oil price of $ 69.26 in September 2007 moved up to $ 110 in April 2008 when the last cut was made. Today, oil is about $ 130 per barrel.

This provides for an explosive mixfor the drivers. Hard-working Americans pay the price at the pump for a devaluation of the dollar thanks to Mr. Bernanke. Lower interest rates were meant to help the banks in the light of the real estate crisis. Instead, it helped the value of the dollar and the smaller effect, increasing the price at the pump.

I hate to say it, but the dealers are mainly large commodity and futures commodity fueling the bubble. As with any bubble, take over emotions. "The different this time". If historyhas taught us anything, that you never different this time. They continue the perception that the demand for oil will feed the oil price over $ 200 power, and they do not want to miss the boat.

So, what can you do about it? In the next article we will tell you how to use the benefits of this trading opportunity.