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Looks like we are in for another Oil Tycoon summer

Posted by on Jun. 9, 2009 at 5:37 PM
  • 19 Replies

$70 oil menaces budding recovery

As oil prices rise, some say already weak consumer spending is in danger of taking an even harder hit.





NEW YORK (CNNMoney.com) -- Two weeks change a lot in the oil markets.

At the end of May CNNMoney.com ran a story asking if $60 oil will kill any economic recovery. 'No," most analysts said - consumers could shoulder $60 crude, and analysts didn't see prices going much higher.

Now oil is touching $70 a barrel. Goldman Sachs recently said it sees crude at $85 by the year's end. With the economy still on life support, oil is drifting dangerously close to being the wet blanket at the recovery's party.

Talkback: Will $70 oil snuff out any economic recovery?

Many say consumer spending - which accounts for over two thirds of the nation's economic activity - takes a big hit when crude hits $100 and gas $3 a gallon. Some say it's more like $125 crude and $4 gas. Others say that during a recession $80 is the breaking point.

But putting a number on it is almost beside the point. The higher it goes, the more it hurts.

"People say it doesn't matter until gas gets to $3 or $4 a gallon," said Peter Beutel, an oil analyst at Cameron Hanover. "But every time it goes higher it takes that much more money out of consumers pockets."

Beutel can even tell you how much. For every 10 cent rise in gas price, people can spend $40 million less a day on other things.

"We're losing opportunity every time the price rises," he said.

Most analysts say prices aren't rising because of an actual shortage, but rather because Wall Street is again retuning to the crude market.

http://money.cnn.com/2009/06/09/news/economy/oil_prices/index.htm

by on Jun. 9, 2009 at 5:37 PM
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Replies (1-10):
mamadixon
by Gold Member on Jun. 9, 2009 at 5:42 PM

Some things never change.

stormcris
by Christy on Jun. 9, 2009 at 5:43 PM

Exactly!

Quoting mamadixon:

Some things never change.


Pepperlynns
by on Jun. 9, 2009 at 5:48 PM

At some point, you just have to say, "F*ck it. I'll walk."


Kinky is using a feather. Perverted is using the whole chicken..



I'm a 30 yr old mom to 3 kids 9,7,5 yrs old..Wife to  the greatest man in the world of 11 yrs..SAHM..Not looking or giving advice on how to raise MY/YOUR kids..I'm a smoker,a toker,a social gulper..We live in Texas..Im spiritual,anti-gun,non-organic,swearing,President respecting woman..We make good money and buy American made products..

mamadixon
by Gold Member on Jun. 9, 2009 at 5:52 PM

It's funny during the low in prices we were able to make a big dent in our gas card bill..just in time to fill 'er up again.YAY!!!!

Wyldbutterfly
by Bronze Member on Jun. 9, 2009 at 5:53 PM

 Every summer oil goes up. It's not a shock to me anymore. It just down right pisses me off. This is nothing more than a money grab by your  GREEDY oil tycoons and GREEDY government.  It's $2.74 a gallon here already.

jrdnjstn00
by Bronze Member on Jun. 9, 2009 at 5:55 PM

This is no big surprise. I want to know how this helps us go into econmic recovery when many more people have lost their jobs since last year? This is just more money taken out of the pockets when they don't have much to spend in the first place. I read in the paper that gas has gone up for 41 days straight. I don't understand why..there is plenty of gas in reserves and I doubt more people are driving then last year.

My ex works in the oil industry and he actually goes to the places that they drill. he says they have so many tankers in reserves that they want to lay them off and actually some of them have been laid off.

OPEC should just reduce the output of oil more so we all can pay $5 a gallon (being sarcastic).


spoiled_wife
by Member on Jun. 9, 2009 at 5:57 PM

{{{knocking on wood}}}}

So glad I don't have to drive.  So glad that I don't have to pay for gas.

                                               

stormcris
by Christy on Jun. 9, 2009 at 5:58 PM

Yes, it does go up a bit each summer but at the rate this is climbing without real supply and demand to back it...it could cause a lot of issues.

Quoting Wyldbutterfly:

 Every summer oil goes up. It's not a shock to me anymore. It just down right pisses me off. This is nothing more than a money grab by your  GREEDY oil tycoons and GREEDY government.  It's $2.74 a gallon here already.


Wyldbutterfly
by Bronze Member on Jun. 9, 2009 at 6:10 PM

I hear ya. Like I said GREED! I'm waiting to see the cause and effects of this.

Quoting stormcris:

Yes, it does go up a bit each summer but at the rate this is climbing without real supply and demand to back it...it could cause a lot of issues.

Quoting Wyldbutterfly:

 Every summer oil goes up. It's not a shock to me anymore. It just down right pisses me off. This is nothing more than a money grab by your  GREEDY oil tycoons and GREEDY government.  It's $2.74 a gallon here already.



Talee
by Gold Member on Jun. 9, 2009 at 6:11 PM

 Oh thats lovely....greedy F***ers I tell you. Also another thing that pisses me off to no end is the electricity companies raising rates in the summer. I live in Phoenix, AZ...we HAVE to have AC here otherwise we would shrivel up and die....and in this economy you would THINK asshole companies like this would give people a damn break.

Dont get me started on credit card companies....GRRRRR....

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