Energy Politics

Oil prices jumped back up today after falling below $100 based on the new inventory report that found fuel inventories were lower than expected and the dollar’s value is starting to slip again.

Oil settled at $104 a barrel today after gasoline inventories slipped 3.3 million barrels, right when traders are getting ready for the busy summer season. Prices normally jump up anyway during this season due to scheduled oil refinery shut-downs and increased driving. But market uncertainty is pushing prices even higher, with gasoline prices expected to hit $4 per gallon this summer.

Of course, prices has been bobbing up and down for the past few weeks. Who knows, tomorrow they could be down again. Like Madonna’s performing career, the market is fickle. You never know where it’s going next. That’s sort of fun and sort of scary at the same time. I think I’m going to wish for one of those Jetson’s style flying cars, but until then, this summer looks like it will have an interesting affect on both the economy and the national psyche.

–Stephen Payne, Editor, Oil and Gas Investor This Week; spayne@hartenergy.com

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