Tuesday, April 19 2011 - Since the middle of February oil prices have increased by some $22 a barrel. As the U.S. currently consumes just over 19 million barrels of oil a day, that means collectively we are now spending about $420 million a day more filling up our fuel tanks than we were two months ago.
Now some of us are wealthy enough to absorb this increased expenditure without a second thought, and some just tuck the added cost away on their credit card statements in hopes there will come a day when they can afford to pay it off. For most however, these higher fuel costs, and of course the higher food and nearly-everything-else bills that go with it, are being covered by foregoing other expenditures that are not an essential part of our lives.
Unlike the price spike of three years ago, when oil prices climbed from $70 a barrel in late 2007 to a peak of $147 in July 2008 and then collapsed to less than $60 a barrel by the end of the year, this time prices have been moving steadily higher since March of 2010. Much has happened since the 2008 oil price spike that has left the U.S. and global economies different places than they were three years ago. More> >>>