Friday, January 07, 2011

Oil Prices Update

by Calculated Risk on 1/07/2011 11:01:00 PM

From Ronald White at the LA Times: Gasoline prices' rise evokes 2008

"It's just ridiculous. Every day it's another big bite out of my income. I've gone from $40 for a fill-up to $60 for a fill-up in just the past several weeks," said Eric Ott, a 47-year-old Valley Glen resident.
...
Oil closed Friday at $88.03 a barrel in New York futures trading.
...
"[W]e cannot expect brisk economic growth with oil at $120, $130, $140 a barrel and gasoline at $4 a gallon and higher ... Those kind of prices can spawn a tremendous amount of demand destruction." said Tom Kloza, chief oil analyst for the Oil Price Information Service
Back in early 2008 we saw clear signs of demand destruction. No obvious signs yet in 2011, but I had a similar reaction as Mr. Ott when I filled up my tank this week - ouch!

Jim Hamilton discussed this last month: Worrying about oil prices

Earlier Employment posts:
Employment: The Declining Participation Rate
Employment Summary and Part Time Workers, Unemployed over 26 Weeks
December Employment Report: 103,000 Jobs, 9.4% Unemployment Rate