Personal Finance Advice

Although the price of oil has stabilized recently, due to forecasts of decreased worldwide demand and the possibility of OPEC countries increasing their production, Americans haven’t really felt the effects so far from it’s sharp climb this year.  That could all change soon.

Many analysts agree that the current price of oil is abnormally high.  While some of it can be attributed to the falling value of the dollar, many different factors have conspired to produce these record price levels.  Though oil prices have risen by more than 50% over the past few months, the price of gasoline hasn’t kept pace.

If you ask any American on the street, they’ll tell you the price of gas is already too high, but signs are already pointing to higher gas prices this winter.  Normally this is  a period when prices typically fall before rising again in the spring in anticipation of the summer driving season.  Unless oil prices begin to fall to more reasonable levels soon, some analysts predict the price of a gallon of gas could hit $4 by next summer.

Passengers who haven’t already booked flights for the holiday season could also see a sharp increase soon, as seasonal demand and higher jet fuel prices will force airliners to raise ticket prices.  Homeowners will also see higher heating bills this winter.

Many Americans have been sheltered from the full blow of the higher prices so far, due to the fact that the U.S. has been using it’s large crude oil reserves rather than purchasing oil at these high current prices.  However as our existing inventory begins to shrink, we won’t be able to avoid the hit much longer.