Good news on gas prices! I actually pumped a full tank of unleaded gas at $2.87 per gallon at the Chevron station on the corner of Military Trail and Hillsboro Boulevard. I was beginning to become accustomed to spending around $3.05 and attributed the fall in gas prices to the unofficial end of summer.
Eager to find out what is really going on, I found an article titled "Natural-gas futures close at 20-month low" on Marketwatch.com. We haven't seen prices this low since March and it has alot to do with the tensions between the United States and Iran's uranium enrichment program. No major conflict arose while the U.N.'s deadline passed for Iran to end their program, relieving market tension. Apparently, good ol' Ernesto also had something to do with the drop in gas prices. Marketwatch relates this occurance to the expectation of rain along the East Coast, thus lowering the demand for energy.
However, I found some bad news in another Marketwatch article titled "Winterizing your portfolio." Reporter Kevin Kerr lists certain commodities for investors to add to their portfolios this winter in order to make a profit. He mentions natural gas and oil as being top commodities year-round because of their maximum use. Heat and air conditioning are generated from oil and natural gas. He mentions that crude oil prices have gone up because of the temperature extremes and because of "geopolitical events" between the United States and the Middle East. It looks like our nation's political environment has alot to do with why those prices have been so high this summer.
My advice is to fill up now--you never know when our next fight with Iran is going to happen.
Monday, September 04, 2006
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