Today crude oil futures hit a new 17 month high, closing at $86.75. It has been a whirlwind for crude oil futures over the last couple of years. In the summer of 2008, oil prices traded as high as $147 a barrel and gasoline prices at the pump topped $4 per gallon. As the economy went into the tank in late 2008 and early 2009 the price of crude oil and gasoline dropped quickly. Crude oil futures plunged below $45 a barrel and gasoline went slightly below $2 per gallon. Fast forward to today, and crude oil prices have doubled from their low and gasoline prices are on the rise.

The writing is on the wall, gasoline prices are certainly going to cross $3 per gallon soon. The extra money you had in your budget because of the drop in gasoline prices is going to go away, and once again travel expenses are going to start causing many consumers headaches in the next few weeks and months. The biggest negative about this news is that summer driving season is coming soon, and prices are almost assured to be higher then, which will hurt vacation spending as well. It is all a vicious cycle that has the potential to slow down the economic rebound that appears to be underway.

As a wise consumer, I strongly suggest you start finding places to cut your expenses little by little to account for the higher costs of travel that are coming soon. Find areas of your budget that you can cut back ever so slightly to make a small differences. Those small differences will quickly add up to a significant amount over time. The sooner you start making changes in your spending habits, the better prepared you will be when these prices continue to rise in the months ahead. Preparation is a huge key to financial success, so start getting ready today!

Over the last few weeks as the stock market has been holding onto, and even furthering its gains of the last couple of months the crude oil and gasoline futures prices have jumped higher. What does this mean? This means that very soon motorists can expect a pretty big hike in the price of gasoline. Crude oil futures gained almost $3 a barrel today and have now gained 32% on the year. Gasoline futures have had an even greater move to the upside. Just this afternoon gasoline futures hit their highest level since October 15th of last year. If you’ll remember, October 15th of last year was right in the middle of the terrible run for the stock market, so it is quite striking that gasoline prices have already reached that level.

What’s behind the climb in crude oil and gasoline prices? In the last few days in Nigeria a militant group is causing some significant unrest and is specifically targeting the country’s huge oil supply. Another reason is that many oil traders are beginning to believe that the massive sell off which took crude oil prices down into the 30′s late last year and early this year may have been overdone.

The biggest determinant for where crude oil and gasoline futures prices go in the short-term is probably the summer driving season. Will Americans do less traveling because of tight budgets or will they continue to fill up their gasoline tanks as normal? Most expect a decline in travel, but the rate of the decline is still to be determined.

Unfortunately the higher prices at the pump will mean increased costs to the consumer that really is in no position to take on higher costs at this point. It may not be what you want to hear right now, but the truth is, gas prices are on their way up.

Recently the price of gasoline has dropped quite substantially, from a nationwide average of $4.00 a gallon in June to a current level of about $1.75. This drop has occurred because of the drop in the gasoline futures market as well as the crude oil futures market. Crude oil had been trading as high as $147 a barrel, and it now trades at about $41 a barrel.

There are certainly some notable positives to gasoline prices going down. The average consumer is getting a nice break each time they go to the pump and fill up their tank. The lower prices at the pump theoretically should cause consumer sentiment to improve and bring better retail sales numbers in the long run. Gasoline prices had certainly gotten out of hand and were climbing to a ridiculously high level, so a reversion to a more normal level seems quite healthy overall.

While it may be difficult for some consumers to think this way, there are actually a couple major negatives of gasoline prices falling as quickly as they have of late. The number one reason that gasoline prices have fallen so hard and fast is traders are worried about the state of the economy in the United States and around the world. Falling demand for oil and gasoline because of the economic recession is hurting the oil service companies.

It seems that right now consumers are wise enough to realize that they should be saving up the extra money they can keep when they fill up at the tank instead of spending it on discretionary items. This rise in personal savings is negative for the economy in the short run, but in the long run it is best for the overall economy as well as individuals. Gas prices going down is probably a net positive, but a crash in the demand for oil could signal a depression in 2009, which we certainly don’t want to see!