Saturday, January 5, 2008

Oil Watch: December 31 to January 5 Prices, Causes and Effects

Closing price
: $97.91 per barrel (up)
National gas average: $3.01 (up)

Although we predicted oil would remain steady, oil spiked this week to over $100.

1. Weak dollar
A lower dollar makes oil cheaper in countries that use other currencies.
1. U.S. economy
An economic report relieved some worries about the U.S. economy.
3. Mexico exports down
Because of bad weather
4. Instability in the Middle East
In Pakistan and Indonesia.

Market jitters, rising gas prices.