Amid the upbeat consumer spending reports and economists predictions of a happier new year, oil prices made their stealthy climb. At two-year highs, market analysts say that $100 a barrel is likely soon.
Impacting Economic Recovery
Oil prices figured largely in the last economic crash and with the recovery still shaky, could high prices at the pump jeopardize what is supposed to be a better financial year for the average worker and his/her family? Experts fear the answer is yes.
Pre-Christmas oil prices of $90 a barrel or higher constrained businesses and travelers alike. The American recovery needs oil, and competition from the emerging world markets, combined with highs not seen since 2008, worry officials.
Pain at the Pump in 2011
Though experts expect prices to retreat by the end of 2001 with expected increases in production by both OPEC and non-OPEC producers, prices at the pump will pressure consumers this year as oil refineries continue to impose high feedstock prices on them to make up lost profit margins.
Holiday Travel Forecast
Holiday travelers will encounter the highest December fuel prices on record and North American airlines are getting ready to jack up fares with fuel surcharges. According to Jim Corridore, an equity analyst for Standard & Poor, “It’s not good news to see fuel prices back up. Once we start approaching $100 a barrel, you’ll start to see fuel surcharges come back.”
While 2011 is being touted as potentially happier in terms of earning, the spending people will be forced to do at the pumps might not make the recovery seem like much of a recovery at all for many.
What’s Going on Where You Live?
Gas prices in Canada average $1.17 per litre, a level not seen since October 2008 and 17 cents higher than last year. That’s approximately $4.44 U.S.
What are fuel prices like in your community and have they impacted your holiday travel plans? Let’s hear your stories.
Disclaimer: The views expressed above are solely those of the author and may
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