If you were on the road this time last year, you surely remember the pain you felt each time you went to fill up at the gas station. Crude oil prices skyrocketed last year, reaching an astronomical $145.29 a barrel, but this year, oil prices remain relatively tame at $66.73 a barrel. Slackening demand for oil across the world has seen prices fall by almost $3 recently.

Oil prices have appeared to be on a rollercoaster ride over the past year. From the record-high prices reached last year, oil plummeted to about $34 per barrel in December as the economic crisis shattered demand for crude oil. Despite the touchy situation of the economy still, oil has slowly recovered and gained value from then until now.

Analysts have attributed last year’s oil price spike to a number of factors. The first was a global increase in demand for oil, which allowed oil holders to drive the price higher and maintain profitability. The second was the fact that the dollar was actually very weak at a bad time, leading to shocking prices at the pump.

Remember those days? (Image: Flickr)

Much has been said about employment and housing with regards to economic recovery . However, as important as these items are, one should not forget consumer spending. While it is good for one’s personal economy to cut back on consumer spending, it does tend to cause problems for the wider economy, since 2/3 of our economy is dependent on the spending that you and I do . Gas prices can impact how much we spend in other areas of our lives, and they can impact general feelings about and confidence in the economy. James Surowiecki points this out in The New Yorker about gas prices, consumer spending and the economy :

Although there is no one-to-one correlation between gas prices and consumer confidence, a 2007 study by the economists Paul Edelstein and Lutz Kilian showed that, historically, sharp spikes in oil prices have sent consumer confidence plummeting , and have led to outsized cutbacks in general consumer spending. This makes sense: gasoline prices are the most publicly visible prices in the economy as a whole—no other prices are displayed on the street in bold, two-foot-tall numbers—so it’s not surprising that they have a disproportionate impact on the way people feel.

Gas prices have been relatively low recently, so they have fallen off the map a little bit. But that is changing. A rally in commodities may be underway, and that means higher oil prices. And higher gas prices. The American consumers may soon find themselves pessimistic about the economy. Add rising gas prices to unemployment that is expected to reach 10%, and to still-falling home values (even as mortgage interest rate move higher), and consumers — who have only recently been opening their wallets — may feel as though it is time to close them again.

Image source: Aaron Lawrence via Wikimedia Commons

Despite the economy slowly and tenuously attempting to rebound from the depths it has reached, OPEC seems to be intent on driving oil prices higher and higher. At $63.45 a barrel, prices are already the highest they have been all year, but OPEC has said that it is considering a price somewhere between $75 and $80 a barrel.

Image: Flickr

A sharp spike in oil prices has been supported by OPEC but strongly condemned by many economic analysts. OPEC contends that it needs to drive oil prices higher in order to spur energy investments, but analysts tend to agree that a skyward oil prices would eradicate any improvement in the delicate economic situation.

Despite OPEC’s apparent eagerness to send oil prices even higher, the organization will not take action until its meeting on Thursday to discuss policy. Until then, the rest of the world will just have to wait and see.

One of the more interesting tools available to those who wish to save money is BillShrink. Many people are already familiar with BillShrink’s ability to help you compare credit cards and cell phone providers and plans. Today, BillShrink added a feature that allows you to figure out where to get the cheapest gas along your chosen route. This tool can be used to help you plot out your refueling stops on vacation, or help you decide the best place to fill up on your way home from work.

Samir Kothari, one of BillShrink’s founders, talks about the up-to-date and accurate information offered by the new tool, “We get pricing data every four hours, since gas prices can change multiple times during the day. What might have been the best option in the morning may not be the best place to fill up in the afternoon. It may only be a few pennies a gallon, but over a year that can add up.”

Kothari shows me a demonstration of his commute. One of the features of BillShrink’s gas prices comparison is that you can enter your normal fueling station, and your results will be listed according to how much you can save on each fill up if you go someplace else. As with BillShrink’s other tools, the gas prices comparison tool is completely personalizable. You can put in as much information — or as little — as you want. You can include you most frequent destination, set up to receive email alerts and enter information for multiple cars. I like the way the email alerts are set up especially. “If you fill up on Saturdays only,” Kothari points out, “you can set up the alert to only arrive Saturday morning, so that the best gas price is waiting for you when you are ready to go.”

Kothari says that BillShrink is working on a fully mobile version. But, for now, you can get alerts if your mobile has email.

In the end, I really like this tool. I don’t really need it for my local driving, since I go to the lowest-priced gas station in town and receive a discount when I buy groceries. But it is definitely something I will use when we go on trips.

Fun Friday is a creative idea we have added to the Business Channel community of bloggers. We will pick a theme, topic, or picture and most of the bloggers will write about it on Friday. This week, our topic is: Gas Prices.

Gas prices are absolutely too high. I actually can close my eyes and remember paying 78 cents per gallon back in 2001. And now we are at $4.00 per gallon at some gas stations in Maryland. Last night, I was working late and I stopped to put gas in my tank and actually drove away from that station when I saw the Regular Unleaded price at $4.00 per gallon. I saw it with my own eyes. I drove away. I was shocked at both my reaction and the price of the gas.

So given the gas prices, how far are you willing to travel for work, for an interview? My commute is one hour and 15 minutes one way. Are you willing to commute day in and day out with the price of gas? In less than one year, my gas expense has increased from $40 per week to fill my tank to $70. That is a huge jump. I remember being angry when the prices were pushing upwards to $2.00 per gallon. If only I could find a gas station that offers $2.00 per gallon today.

If I knew what I know today, I may have thought a little differently about taking the job I have at the University. I love the job, but the commute hurts my heart every time I think about putting gas in my tank. I am like a hawk looking for the lowest gas prices. I found a new gas station around the corner from the University of Maryland that charges $3.68 per gallon, but the catch, you have to pay cash. No credit or debit cards. No problem. I go to the ATM before stopping there.

You know I have no words of wisdom for those of you who don’t want to commute to a new job. I understand. I am a firm believer in going where the work is. So at a minimum I would recommend that you count the cost when making a decision about how far you will travel for work, or for an interview. If the trend continues and gas prices continue to rise, consider other forms of transportation to get yourself to an interview or to work. The train works, the bus, carpooling, or you can be like me, bite the bullet, pray and fill the tank!