Today's Article
A further cut in
consumer spending
will certainly
damage the overall
economy.
consumer spending
will certainly
damage the overall
economy.
The American Spark
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Sky-rocketing Oil Prices Stir Deep Economic Worries
By Cliff Montgomery - May 23rd, 2008
Spiraling oil prices have many Wall Street investors worried that the stretched wallets of ordinary Americans
could mean a further cut in consumer spending--a possibility which would certainly damage the overall
economy.
As Memorial Day weekend begins, travelers are finding that gas prices made yet another leap overnight. The
current national average of $3.88 a gallon is a price spike of almost 20 percent--or 65 cents per gallon--since
last year. And pump price increases show no signs of slowing their daily assault on our paychecks.
"Four dollars (a gallon) is a done deal now," Ritterbusch and Associates Energy Consultancy President Jim
Ritterbusch told The Associated Press (AP) today.
"We could go significantly above that," he added.
Stocks echoed those concerns, with the Dow Jones industrials falling almost 150 points on Friday.
Wall Street investors know that consumers produce over two-thirds of all U.S. economic activity.
And investors also know that consumers will have little choice but to lessen that activity, if they are to afford
spiraling gas prices that already has topped $4 per gallon in some regions of the country.
Light, sweet crude jumped $1.38 to land at $132.19 a barrel on the New York Mercantile Exchange. Oil gained
for the third time this week on Thursday, hitting a record $135.09 per barrel.
Why the raging price increases? Some experts point to a small number of investors, who are speculating that
growing demand from 'emerging countries' such as India and China will outstrip supply. The weak U.S. dollar
further drives up barrel price.
And some can't help but point out the glaring fact that America's sky-rocketing cost of gasoline has climbed
hand-in-hand with "soaring profits for energy companies," as The Washington Post stated in its May 9th
edition.
Whatever the cause(s) of the oil price spike, it is taking a bite from everyone else's profits. The average
American certainly is being squeezed. Even the Dow tumbled 145.99, or 1.16 percent this week, to
12,479.63--its worst weekly showing since early February.
Like what you're reading so far? Then why not order a full year (52 issues) of the The American Spark
e-newsletter for only $15? A major article covering an story not being told in the Corporate Press will be
delivered to your email every Monday morning for a full year, for less than 30 cents an issue. Order Now!
By Cliff Montgomery - May 23rd, 2008
Spiraling oil prices have many Wall Street investors worried that the stretched wallets of ordinary Americans
could mean a further cut in consumer spending--a possibility which would certainly damage the overall
economy.
As Memorial Day weekend begins, travelers are finding that gas prices made yet another leap overnight. The
current national average of $3.88 a gallon is a price spike of almost 20 percent--or 65 cents per gallon--since
last year. And pump price increases show no signs of slowing their daily assault on our paychecks.
"Four dollars (a gallon) is a done deal now," Ritterbusch and Associates Energy Consultancy President Jim
Ritterbusch told The Associated Press (AP) today.
"We could go significantly above that," he added.
Stocks echoed those concerns, with the Dow Jones industrials falling almost 150 points on Friday.
Wall Street investors know that consumers produce over two-thirds of all U.S. economic activity.
And investors also know that consumers will have little choice but to lessen that activity, if they are to afford
spiraling gas prices that already has topped $4 per gallon in some regions of the country.
Light, sweet crude jumped $1.38 to land at $132.19 a barrel on the New York Mercantile Exchange. Oil gained
for the third time this week on Thursday, hitting a record $135.09 per barrel.
Why the raging price increases? Some experts point to a small number of investors, who are speculating that
growing demand from 'emerging countries' such as India and China will outstrip supply. The weak U.S. dollar
further drives up barrel price.
And some can't help but point out the glaring fact that America's sky-rocketing cost of gasoline has climbed
hand-in-hand with "soaring profits for energy companies," as The Washington Post stated in its May 9th
edition.
Whatever the cause(s) of the oil price spike, it is taking a bite from everyone else's profits. The average
American certainly is being squeezed. Even the Dow tumbled 145.99, or 1.16 percent this week, to
12,479.63--its worst weekly showing since early February.
Like what you're reading so far? Then why not order a full year (52 issues) of the The American Spark
e-newsletter for only $15? A major article covering an story not being told in the Corporate Press will be
delivered to your email every Monday morning for a full year, for less than 30 cents an issue. Order Now!