6 Ways to Save Money on Gas

No one really knows where oil prices are headed now-a-days. We have seen the price of oil affect gasoline prices throughout the world to a pretty large degree, especially over the last 3-4 years. As prices bounce around, the economy also is not in great shape. Everyone is looking to save some cash on gasoline right? Well here are some things you, as a consumer, can do to help lower your gasoline use.

#1 Choose alternate cheap methods.
Consider walking, biking, or riding the bus. The first two will not only save you money, but possibly even a couple years on your life, and maybe some money on those extra large sweatpants you have to buy.

#2 Park in the Very First Spot you Find.
Don't spend minutes riding around looking for a better spot. In the time it takes to find another spot, you could already have been at your destination. Walk a little if it's nice out. Time in your car means more gasoline consumption.

#3 Combine trips.
Plan out the quickest way to run all your errands that will save on time and distance traveled. Plan ahead instead of having to run out 5 times every day.

#4 Check the Internet for Gas Deals
Check out sites like Gasbuddy.com for deals in your area. Sometimes you can save as much as 15 cents a gallon from one station to the next.

#5 Who Cares What Brand it is
Gasoline is Gasoline. Who cares if it is Mobile, BP, or some no-name brand? There may be slight differences in the additives of one brand compared to another, but overall, you will not notice a difference.

#6 Sign up for a Gasoline Credit Card
You can often save up to 3% on all gasoline purchases with a cash back rewards program offered to people with good credit scores. Remember to pay off your card on time every time, and to shop around for the best deal.

Could A National Strike in Iran Spike Oil Prices?

The situation in Iran, which I wrote about briefly last week appears to be getting worse as each day goes by. The Defeated candidate, Mousavi, is rumored now to be ready to announce a National strike in Iran which would start with the Oil industry. The question has to be asked... How much will a national strike on the part of Iran affect the international price of oil?

Oil Prices Already Rising
With Summer beginning Yesterday here in the US, Gas prices are already averaging around $2.70 a gallon. Oil Prices have doubled since their lows only a few months ago. If Mousavi does in fact called for a national strike, how high could that make prices go? Technically, the other nations should make up for any production stoppages in Iran, but just the mental impact of the Iran mess could very well send prices back to $90 - $100 by August in my opinion. As you can see Below in the world map of the largest Oil Producing Nations, although tiny geographically, Iran has the third largest oil reserves and currently is responsible for about 8% of all Oil production in the world, with 3.7 million barrels of production per day.



With the economy seemingly getting better, we could be in for another oil price jump. I do not see it getting to $150 a barrel like last year though. Investors will be too hesitant to carry prices over the $100 mark in my opinion for fear of another collapse like we had int he last 12 months.

Price of Oil - Where are Oil Prices Headed?

One of the driving forces behind any economy are it's energy prices. Pretty much every business around the globe is affected directly or indirectly by the price of oil. This is why the huge fluctuations in Oil prices we have seen over the last 2-3 years are quite turbulent for the economy in general. In the last 3 months alone we have seen the price per barrel of oil rise by about 80%. That's almost a 1% gain per day over the last 3 months. This is after we saw Oil prices fall from $150 a barrel all the way down to $35. Take a look at the chart below to see how much prices have increased since the bottom of the recession.



Will Oil Prices Hurt Our Recovery?
This is a tough question to answer. As long as prices don't come close to the highs of last year I don't personally see it being a major dagger in the heart of the recovery. We are in the Summer months, and some price increases were all but guaranteed. We are still at about half of the highs that we saw last year, so we should be thankful of that.

Where are Oil Prices Headed?
You could ask a hundred experts this question and get a hundred different answers. In my opinion, It would surprise me if we saw prices go above $100 a barrel within the next year. The world economies are still fragile, and demand is not as high as they were before the recession, nor will it be for quite some time. As long as OPEC does not cut production any further I think prices should level off in the $60-$80 range for the next 12-18 months at least.