Consumer Spending and The Price of Crude Oil
A snippet on Crude Oil Prices taken from CNBC’s website…
After another record, is crude headed to $100?
Oil prices wouldn’t go away and probably won’t be going away any time soon.
For most of the morning, the price of crude oil was falling. The selling ended in the afternoon, however, and crude bounced to a new record close of $67.49, up 17 cents from yesterday. Crude also hit an intra-day record of $68.
The close came as the catalyst for Wednesday’s oil rally — the approach of Tropical Storm Katrina to Florida and, possibly, the Gulf of Mexico — faded.
For all who profess delight that oil prices haven’t affected the economy much, you’re going to be challenged. Oil is starting to have an effect on consumer spending, said Stuart Schweitzer, the global markets strategist at J.P. Morgan Asset Management. Many consumers are starting to “scrimp and save” to pay the bill at the gas pump, he said on CNBC’s “Closing Bell.” And they face the prospect of big increases in home heating costs this winter.
I just think Stuart’s comment is great! It’s finally affecting consumer spending!!! Ha, I guess analysts and strategists don’t read finance blogs. I think almost every financial blogger has posted on this subject!!