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Archive for February 17th, 2010

Stop thinking about global warming. The real danger is climate change. So, to prove the point, 2010 has started off with some of the coldest weather we’ve seen for decades. For example, look at Florida. Miami sets a new records for cold. The last time South Florida saw snow was in 1977. And what was true for the South proved equally true the further North you moved. This had an interesting effect on fuel prices. Natural gas was suddenly more expensive and homes with heating systems using oil got a nasty shock. It’s the old story of supply and demand and, guess what, the price of crude oil was lifting gently past $80 per barrel. Read the rest of this entry »

The New Year has come in with icy weather. Even Florida has been enjoying a little cool air. Natural gas prices have been rising so, where this is the source of heat, household budgets are under pressure. The law of supply and demand has kicked in with crude oil back above $80 a barrel. During the warmer months, the refineries focus on gas to keep us on the move. But as fall turns into winter, the need is for oil to keep us warm. This year, the cold spell is forcing the refineries to increase the focus on heating the home. At the pumps, the $3 gallon for premium-grade gas is here again. It’s around $2.70 for unleaded. The prices are higher this week than at any time during 2009. And the bad news is set to continue. The economists are saying the commodity prices are going to keep rising. If unleaded hits $3 a gallon, this could be a real tipping point for us all. Sure this is still less than the highs of the $4 gallon we saw in 2008. But the recession has been biting us hard. More of us have been cutting down on spending and paying down the debts. As the costs of basic household necessities rises, priorities change. Just think how much we buy in the stores comes in a truck that burns gas. If gas gets more expensive, those stores will pass on the additional shipping costs to us. That means less retail therapy. If we buy less, we don’t need the same manufacturing capacity. More jobs are at risk. The risk of a double-dip recession is all too real. Read the rest of this entry »