Smart Money: Oil Prices Surge: 5 Ways Consumers May Get Hit
Oil futures surged over $101 a barrel today for the first time since June, a spike which analysts say could raise prices for consumers. But who will get hit first?
The full impact of today’s surge may not be known right away, as the jump is due in part to news of a deal to allow more crude oil to be moved from the Midwest to Texas refineries. But many think higher prices could have an immediate effect on consumers. Two areas of concern are already emerging: The cost of airfare this holiday season will likely rise, says George Hobica, publisher of Airfarewatchdog.com, as airlines seek ways to make up for higher fuel costs. Separately, higher trucking and shipping costs could be passed on to consumers, experts say. “The hope for more moderate oil prices is probably gone for now,” says Tom Kloza, chief oil analyst at the Oil Price Information Service.
To be sure, oil could drop back down as refineries gain more access to West Texas Intermediate crude oil, a supply of which has been pent up in the Midwest, says John Lonski, chief economist at Moody’s Analytics. Even after today’s price increase, WTI is still less expensive than other crude oil sources, he says…..Read It All
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