By Gregory Meyer and Michael Mackenzie in New YorkTHE ASTUTE BLOGGERS ON TUESDAY: "OIL PRICES KEEP RISING, THREATENING THE WEAK U.S. RECOVERY"
Published: April 8 2010 18:51 | Last updated: April 8 2010 18:51
Oil graphic for Markets
This week oil climbed to $87 a barrel, its highest level since October 2008 and prompted concerns that triple-digit crude was once again in the offing.
This was after a period of eight months when oil traded between $70 and $80, a narrow band that pleased oil producers without hurting consumers too much.
The latest surge seems to have been prompted by rising confidence in a global economic recovery, even if most traders and bankers are still cautious about supply and demand fundamentals.
Worries about the Greek economy have pegged prices back over the last couple of days but the more bullish Wall Street banks see prices climbing further, with Barclays Capital forecasting $97, Goldman Sachs $110 and Morgan Stanley $100 next year.
But the higher prices go, the deeper the concerns that they will stifle global growth. Jeff Rubin, a former CIBC chief economist and author of a book on oil and globalisation, says: “Triple-digit oil prices are going to threaten a world recovery.”
MY POST ALSO HAD THE SOLUTION:
REGULAR READERS KNOW THIS HAPPENS ALL THE TIME.
THE RUN-UP IN PRICE WILL KILL THE RECOVERY.
WHAT'S THE ANSWER?HOW DO WE DO THAT?
VOTE THE FREAKIN' DEMOCRATS OUT OF CONGRESS!
SPREAD THE EFFIN' WORD; BLOGROLL US; BOOKMARK US; FOLLOW US!