Aug 16 2008
Oil Prices Fall Again - 3rd
All right people, if I am not good when predicting the state of commodity prices (oil mainly) and the strength of the dollar then nobody can. I said two weeks ago that the dollar would rally against the major currencies pushing the price of oil down since the value of a barrel of oil is priced in US dollars. In the past two weeks the US dollar has strengthened against all major currencies. Today, it takes $1.48 to equal 1 Euro, a 7.4% drop in the Euro from July 15 to August 15, 2008.
What does this mean for you and me, less amount it costs to fill you gas tank, less money to get are goods to the supermarket and less money to fuel our military. Now here’s what you should do to capitalize on these current events.
1) DO NOT use more fuel than what you have been using these past months just because operating costs are lower for your gas guzzler. The extra cash should be about $6 a week but hey, six bucks is six bucks.
2) Put your extra cash to pay down you debt or put the cash in you savings account.
3) The trip to Europe is looking better everyday, but do not leave now, wait until winter to head across the pond. Flights and hotel rooms will be less expensive doing off peak season.
The rise of the dollar and drop in oil prices is good news for us Americans so long as the dollar does not gain too much on other currencies. Our exports are rising but will fall with to strong a dollar.
This will be my last blog concerning oil for a while unless something dramatic happens in the market.
