Why I refuse to buy oil stocks, I'll never know. We can expect another record round of quarterly profits from Exxon and the rest to be announced in July. By industrial world standards it's still pretty cheap in the US. Most of Europe is paying $5 to $6 a gallon. The sudden rise in prices is sure to impact the rest of the economy as just about everything is impacted by the price of gasoline. The Bonddad Blog asks some good questions.
1.) We are at the beginning of the summer driving season. Will prices continue to increase throughout the summer?
2.) What will be the impact on consumer spending? We saw a terrible retail month in April. Wal-Mart posted their worst decline in 28 years. I have to think high gas prices were partially responsible. If prices continue to increase, will we continue to see a drop in consumer spending?
h/t to Crooks and Liars