Oil Prices Rising

Oil Prices surged on Tuesday after panel investigating the Gulf oil spill said the oil industry and the government need to do more to reduce the chances of another large-scale disaster. The price of a barrel settles at $91.11 on the New York Mercantile Exchange. The panel's recommendations included increasing the liability cap for damages when companies drill offshore; increasing budgets and training for the federal agency that regulates offshore drilling and lending more weight to federal scientific opinions in decisions about drilling.
The timing of the panel's decision could not have come at a worst time since the US Government is planning on reducing Oil production in the gulf of Mexico. This action taken by the US government will likely cause shortage of inventory and rise at the pump for consumer. Now that the Panel's decision has arrived, Consumer are certain to be hit in the wallet with higher Gas prices.
In the meantime, Gasoline prices have already risen to $3.01. At the same time, the recent winter storms have caused an increase for heating oil which also drove the price of oil higher.
Oil prices also got support from Japan's promise to buy bonds to help finance Europe's bailout fund. The money from the sale will be used as part of an international bailout of Ireland, even as speculation lingers that Portugal and perhaps even Spain may be forced to seek help with financial problems.
In its short-term energy outlook issued Tuesday, the Energy Department forecast oil prices will average $93 a barrel this year, which would be $14 more than the average price in 2010.
The price at the pump is suspected to reach $3.17 by the summer. Certain parts of the country are seeing higher Gas prices close to $3.20 for regular gasoline. According to the EIA, the price of gas could even hit $4.00 per gallon.
In other Nymex trading in February energy contracts, heating oil rose 5.27 cents to settle at $2.6088 a gallon, and gasoline futures gained 2.41 cents to settle at $2.4784 per gallon. February natural gas futures added 8.2 cents to settle at $4.481 per 1,000 cubic feet.

 
I must say that since the Oil Companies usually have enough oil for up to 2 years. I am wondering why we are seeing sudden increase of oil prices at the pump since their inventory price is not affected by current events. Therefore we must ask ourselves why we keep pay more at the pump based upon even that do not quite affect their inventory. Remember that oil companies have posted records profits in Billions. If oil is so difficult to acquire which push them to raise prices, how are they able to manage such records profits? Is it because of demands or because of taking advantage of buying very low and selling very high based upon some sort of events happening somewhere in the world.
Consumers should be ready to spend more at the pump in 2011. The way things are moving, we may soon forget about $2 to $3 gas prices, since we will be spending more than that in the future.
In any cases, this is an opportunity for investors. As we all know, when it comes to dealing with investment products, time is of the essence, having the right information at the right time can help an investor maximize on his/her investment or minimize his/her lost.

New Banks Fees

Most Major Banks are ending their free checking accounts programs. Since the CARD act was implemented last year. The rules banned a handful of fees, including certain overdraft and excessive late charges. Others prevent over-the-top interest rate hikes. Most recently, the Federal Reserve proposed a cap on debit fees (what the bank charges retailers when customers swipe their cards.) It is clear that Banks are trying to find ways to charge customers to recuperate their lost. Most of those banks received some sort of Tax payer money to help them while in crisis. Most of the banks have posted profits and emerged from the crisis. Bank of America is planning on charging $8.95 on most checking accounts unless you are able to maintain a balance of $1500 or make at least one direct payment. You can also opt for their enhance checking and maintain a $5000 balance otherwise you will be charged a fee of $19. JP Morgan Chase will charge you a $12 monthly fee for new accounts unless you maintain a checking account balance of $1,500, make monthly direct deposits of at least $500, or keep a $5,000 balance across all deposit accounts -- including checking, savings and investments. In case you already have a chase account, you will be charged a $6 monthly fee unless you make a direct deposit at least $500 per month or make five debit card purchases. Currently, customers can qualify by making any direct deposit. Citibank is planning on charging up to $30 monthly fee. The basic checking account charges a monthly maintenance fee of $8 on unless you complete five or more monthly transactions, including direct deposit, debit card purchases, bill payments, check payments and ATM cash withdrawals. Another offering, the Citibank account, charges a fee of $20 unless you maintain a $6,000 monthly balance in linked accounts including checking, savings and investments. Wells Fargo has ended its free checking account since July 2010. Customers have to pay a $5 monthly fee unless you are able to maintain a $1500 balance or make a $250 monthly deposit. Other accounts from Wells Fargo charge up to $30 monthly fee unless certain requirements are met (higher combined balance, making transfer…). Wachovia Bank has maintained its free account but has increased other fees to make up for it. Now when it comes to HSBC, nothing has changed. Customer are still getting charged $3 monthly fee. Choice account users can avoid a monthly maintenance fee of $8 by using direct deposit, keeping at least $1,500 a month in deposit account balances or maintaining a balance of $5,000 across all accounts including deposit accounts, credit lines and investments.
We can still get free checking account at smaller banks, Credit Union and online banks. But with those banks, you could be limited to locations, ATMs, Services. Which could cause you extra fees or some inconvenience in case you travel outside of the bank’s networks.

Now the question is why should we be charged to give the Banks money that they will use to lend us and make more money (interests), they will invest, they will lend to each other in the form of overnight loan to satisfy the Fed requirements…?