Click on the chart to enlarge. It charts the very recent spike in oil prices. Anyone know what this is?
The end of the recovery !!
Maybe not.
It all depends upon about what happens in the Middle East. Egypt does not effect the price of oil. But, what happens in Behrain or Lybia does.
A week ago, price per barrel of crude was $84 per barrel. Today? It may close out the day at $95 per barrel. Worse yet is the cost of wholesale gas. Yesterday, it rose 8 cents per gallon and today, as I write, it has risen 12 cents. If these costs remain, the price of fuel at the pump will definitely increase.
Understand that what happens in Iran, Iraq, Bahrain and Lybia effects our economy. This morning, Lybia announced the cancellation of all current oil contracts. Start shaking your heads and say this with me, now, "We are all so screwed!"
Point of post: to encourage the readership to get ready for hard times, ala the spring of 2008. Obama has had two years to get ready for this eventuality and has done nothing in dealing with the immediacy of this matter. Instead, he has effectively shut down the Gulf from drilling (via the permit process), canceled major coal contracts and prevented states from developing oil supplies within their own boundaries. Natural gas supplies are being developed with no thanks to Obama, but nothing is coming our way in terms of immediate relief -- nothing as per the energy policies of this stranger in our White House.
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