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Position: Auto Articles - [Auto News] - Gasoline Hits New Record Highs
Updated: 01:56 p.m. EDT, May 12, 2008
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Gasoline Hits New Record Highs

On Monday, May 12, AAA reported the sixth consecutive daily increase in national gasoline prices and the fifth record in a row for America's on-going pain at the pump.

On average, the national price per gallon of gasoline hit $3.718, an increase of 1 and one-tenth of a cent from May 11. The increase is 21% more than drivers were paying one year ago when the average stood at $3.064.

Over the past year the per barrel price of crude oil doubled, closing on Friday, May 9 at the record level of $125.96. Earlier in the day the price reached $126.

Gains in the strength of the dollar caused crude futures to retract on Monday with June delivery crude dropping to $124.64 per barrel. While a weak dollar leads investors to seek a hedge against inflation in commodities including oil, a stronger dollar can reverse that position.

Multiple factors influenced oil's rapid advance, including evidence that Hugo Chavez, the controversial president of Venezuela, offered assistance to Colombian rebels leading some in Congress to call for Venezuela to be added to the list of state terror sponsors. The country is a major supplier of oil to the United States.

These reports have done nothing to stem consumers' fears that gasoline will reach $4 a gallon at the height of the busy summer travel season.




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