Oil prices reached a year-and-a-half high, but there is hope for consumers
Last week, global crude oil prices hit an 18-month high. This week, in
This is both good news and bad news.
The bad news is that the economic recovery could slow if gas prices rise too fast. And because refiners have to make costlier blends to meet summertime emissions limits, gas prices usually rise as summer approaches anyway, meaning Americans could soon find themselves paying
The good news, though, is that
The rise in oil prices is tied to this rosier outlook.
"What's really driving a lot of this are the expectations about new demand growth and the optimism around the world," says
This last point may sound troubling because it was precisely the rising oil demand in
Fast forward two years, through the recession, and the situation is different.
The Saudis also have a longer-term worry. They know that when crude oil hit its records in 2008, it gave
a huge boost to renewable energy efforts. So they want to keep oil attractive. With today's weak economy,
they're in an especially precarious position. The year-and-a-half high that oil hit last week was
It's the sort of worry that's already attracting attention from some politicians. In a letter this week to Energy Secretary
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Summer Gas Prices to Spike but Not to Record Highs | Kent Garber
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