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Gas prices falling, do you know why?

Have you noticed a slight drop in the price of gas at the pump lately?

It has been a fairly steady drop here in Missouri over the past two or three weeks, with a small jump Thursday. 

Ever wonder why?

Well, it is not a direct corrolation, but if you look at currency exchange rates you can get a bit of a hint.  The dollar has been decimated by the obscene level of government spending.  [Last week I posted a link on Facebook to a YouTube video that did a great job explaining this.] 

Look at what the US Dollar is doing in comparison to the Euro.  That impacts crude oil prices more directly, but it also has a big impact on refined petroleum as well. 

Lately, the US Dollar has gotten stronger….really, it is the Euro getting weaker, but the effect is the same.

As of this posting, the US Dollar vs. Euro is the strongest since 21 May 2009.

Direct corrolations don’t always work for direct numbers.  Here in Missouri, gas is averaging $2.43 9/10ths per gallon today.  On 21 May 2009, it was $2.21 9/10ths per gallon.

That 22 cents per gallon comes from other factors, such as delivery costs and more crude being produced into home heating fuels.

I used to say this on the radio, since I lost that medium I stick with this one.  Keep an eye on the Dollar.  The weaker our government makes it, the more it costs us at the pump.

And now you know.


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