The price of gas gone up 18 cents in the last month. While we are all no stranger to fluctuations in gasoline costs the motivation behind it is typically thought to be for profit or supply and demand. The primary reason this time, however, is a weak US dollar that has sent investors to oil, pushing up crude prices over the past few months. In a ever competing market the the weakening of the dollar could not come at a worse time when countries like Japan and China are continuing to demand more and more crude oil.

"According to the International Energy Agency, OPEC has increased oil production by about 1 million barrels of oil per day since the first quarter of the year. Meanwhile, demand in Asia is picking up, especially in China. In September, oil demand increased 14 percent compared to year ago and in October demand increased at double digit levels, says Paul Ting of Paul Ting Energy Vision, a leading analyst of China petroleum demand."

β€œChina has mostly absorbed the increase in production from OPEC,” says Mr. Ting, estimating the increased oil thirst at about 1.2 million barrels of oil per day."

Tags: oil, gas, gasoline cost, US dollar,

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