Posted on 06/10/2009 2:40:08 AM PDT by Scanian
But "as oil prices rise, so will big oil companies' profits, creating more importance to pass the legislation," said Daniel J. Weiss, director of climate strategy at the liberal Center for America Progress.
Mr. Weiss added that higher oil and gas prices will soon return to the forefront of the climate and energy debate, helping to push legislation through the House.
At the same time, higher oil and gas prices are likely to slow the economy's eventual revival. Energy Secretary Steven Chu warned last week that gasoline prices in the $3-a-gallon range could require the Organization of Petroleum Exporting Countries to increase production to stabilize the economy.
"There's no question that increasing oil prices slow the economy because it takes more money out of people's pockets," Mr. Felmy said. He added that a $10 increase per barrel of oil subtracts 0.5 percent from gross domestic product.
Still, signs abound that the U.S. economy is no longer in a downward spiral. The Labor Department reported last week that jobless claims and unemployment rolls fell by record levels, sending oil prices above $70 a barrel. AAA reported gasoline demand before Memorial Day rose 2 percent more than it had in the previous year.
The rise in crude prices has paralleled the trajectory in other markets, especially the stock markets, in recent weeks.
Claims from OPEC that the world economy could weather even higher prices, coupled with forecasts that oil could top $95 a barrel this year and investor speculation, have added to oil's rally.
Pump prices are down from this time last year, when gasoline crossed the $4-a-gallon mark and oil pushed toward $150 a barrel, but the prices are still weighing on motorists' bank accounts.
(Excerpt) Read more at washingtontimes.com ...
As bad as I expected obama to be, I seem to have underestimated him. We are better off with our money in Arab hands than in obama’s treasury. I’m okay with the price hike if it slows down the socialist transformation of our country.
Does this mean that this rise in gas prices belongs to Obama? Maybe he can still find a way to blame Bush.
Dollar worth less,oil worth more. Sans domestic drilling of our more than adequate reserves the out of control printing of greenbacks that are financing Obama’s socialist destruction of capitalism in America will force us all to drive high mileage death traps.
Who cares? Everything is going to run on alternative energy in Øbama’s world, Democrats supporters have stopped using gasoline, and the internal combustion engine is no longer manufactured...
No inflation, nothing to see here, move along now
The tremendous lack of knowledge of economics that you reveal in this statement is remarkable. It is hard to know where to start. The first statement is perhaps the silliest. Perhaps look up the meaning of the word "fungible" with regard to the second part.
Oh, wow! More profit? Oh, wow, man! Profit is bad!
/sarc
LLS
Are you talking about Jimmy Carter?
About a week ago in some places.
There is no underlying fundamental support for higher oil prices, which will depress demand further still; unemployment and general caution among the employed is much more pronounced in comparison to summer, 2008. Related currency swings aside, price is spiking on speculation again.
The reason is simple. Today's price depends in part on the expectation of future prices. When oil producers expect future prices to be lower (due to a larger supply from offshore drilling), they lower today's prices. When they expect higher future prices (due to restrictions on the supply of oil), they leave their oil in the ground until the price rises.
$2.70 would be welcome here right now - we’ve been at $2.89 all week.
$2.74 here yesterday...
Gas hit $2.70 here last week.
Alaska has no state tax, and sends checks to residents, representing oil profits.
California has huge budget woes, and has capped their oil fields. These wells would take weeks to re-start. California cannot figure where to find extra revenue. LOL at the California democrats
Premium is $3.07 since last week in So. Cal.
Just a cleaver ruse to make you think it will slow them down. Same as it ever was. Same as it ever was.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.