Oil - Yes It Can Cripple The Economy

HedgeFundLive.com — With Libya still in turmoil, rumours of Saudi’s sending tanks to Bahrain, and Fed Chairman stating, “Sustained rises in the prices of oil or other commodities would represent a threat both to economic growth and to overall price stability,” is oil really going to affect our economy? An interesting fact I heard one analyst claim was, “Oil needs to get above $120 a barrel and hold there for six months for the consumer to feel the affect.” With oil trading at $98.90 at the moment and a 6% move away from $120, we do have reason for caution. We know as summer fast approaches a rise in oil prices is a given. But we have other underlying factors to be concerned about. 

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