When American dollar went high, the gaoline prices went high.
Now that the American dollar is down, don't you think the gasline prices should come down as well?
2007-10-20 11:20:55 · 6 answers · asked by Anonymous in Social Science ➔ Economics
Canadian distributors who rip people off.
2007-10-20 11:33:11 · answer #1 · answered by Anonymous · 1⤊ 1⤋
Sky Witch, you're comparing apples and oranges here. While the weakening dollar makes oil more expensive for us, a strengthening dollar will make gasoline relatively less expensive. Unfortunately, the currency and oil markets are not linked. Oil can rise and fall independent of the dollar. Oil prices are set based on global spot markets. We frequently hear about oil prices in the news and these are spot market prices. There are also futures markets, where investors try to predict what oil will be worth in the future. Supply, political tensions, weather all play a role in setting the final spot market price of oil.
2007-10-22 08:17:00 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Prices for oil is set in a world market,and it is up even when measured in Canadian dollars but up a lot more when priced in US dollars. Much of the price variation is due to the risk premium for trouble in the middle east, so when there is discussion of attacking Iran the price of oil futures go up world wide.
2007-10-21 00:34:28 · answer #3 · answered by meg 7 · 1⤊ 0⤋
Couple of factors...
The price of Oil is at record highs.
When the dollar goes down, that makes imported items more expensive. Oil is imported.
Economics 101---There is not a lot of competition in the US Gasoline Market. All the consolidation (Exxon Mobile;Connoco Phillips etc) decreases competition which makes it easier to game the market
2007-10-20 11:26:38 · answer #4 · answered by Taylor 3 · 2⤊ 1⤋
the two, attacking the incorrect united states particularly did no longer help, fantastically interior the middle East. 9.5 trillion money deficit and becoming isn't helping and borrowing 2 billion an afternoon to pay the pastime on the loans isn't helping. yet we are able to easily pay attention to Sean Hannity and tell something of the international that we've had seven years of impressive improve and purely 5 a million/2% unemployement, we've a sturdy financial device, till the democrats have been given in.
2016-10-13 08:47:30 · answer #5 · answered by ? 4 · 0⤊ 0⤋
The answer is simple. When the Dollar loses value, it takes more of them to buy anything, including gas.
2007-10-21 01:05:21 · answer #6 · answered by arrow 4 · 0⤊ 0⤋