Crude passes $120, gasoline prices increase
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The NYMEX Division Light Sweet Crude Oil futures contract closed up $0.15 to end above $120 at $120.12. Average price of gasoline in the US went up $0.01 since last week ( 04/28/08 ) rising from $3.603 to $3.613 as reported by the Energy Information Administration.
Rising gas prices are hurting consumers and retailers are seeing a decline in consumer spending which roughly accounts for two thirds of the nations economic activity. It is estimated that a major portion of the economic stimulus package approved by the Bush administration will go to the pockets of the OPEC - the Organization of the Petroleum Exporting countries. United States imports about 60% of its oil from overseas and is the largest consumer of oil in the world. The United states consumed an average 20.7 million barrels per day in 2006.
Unrest in the middle-east, a weakening dollar and fears of inflation have all contributed to increasing crude oil prices. Prices have increased almost 100% since a year when oil traded at approximately $60 a barrel.
