The rise in price is a result of speculators, investors, and faith that the US economy is growing at a rate that can support these prices. Its not because demand is greater and production can't keep up. This is purely a money making deal.
We get the short end, tweaked inflation, because the average asset value per household somehow suggests that we have more dough to throw around. Plus we are still at the mercy of oil. What else is out there to run almost everybody's cars and trucks. We are handcuffed to oil and wherever its price goes we go.
Reuters: Oil rises to 2-1/2 year peak on job rise, supply fear
Brent crude for May rose $1.34 to settle at $118.70 a barrel, the highest close since August 2008 and up $3.11 for the week
U.S. crude rose $1.22 to settle at $107.94, pushing to $108.16 in post-settlement trading. Both the settlement and the intraday peak were the highest since September 2008.
Further supply disruption came from Gabon in central Africa, which produces between 220,000 and 240,000 barrels per day of crude. Striking workers shut half the output on Friday and were to halt the rest within 48 hours.
3 comments:
The Toyota dealership I bought my used 2008 Prius last Sept. called today and wants to make me a deal for it on a new Toyota. I laughed at him. Felt good. Then I said, this of course is an April Fools day joke right? He replied, No, he wasn't joking. I laughed even louder and hung up. For a moment I knew how all those Wall st. bankers must feel daily.
He's pushing it, sales must be real off if he's hunting you down like that.
How's the Prius holding up?
Great car. Don't buy a new one if possible. All these cars are to expensive is the trouble. We should take every dime we waste subsidizing oil, coal and nat. gas producers and give it to people to buy these kinds of technologies and half our problem will vanish. Instead, we do it backasswards and cont. to encourage people buying pick up trucks and SUVS. Makes no sense.
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