The pain at the pumps has been excruciating in recent weeks. Today, oil prices “shot up nearly $11 a barrel” and settled “at a record $138.54 on geopolitical jitters, a dollar decline and a forecast that oil would hit $150 by July 4.”
Take a look at this graph of oil prices in recent days:
Today’s spike “in the July contract for light crude on the New York Mercantile Exchange marks the largest singe-day increase in oil prices on record.” And it created a panic attack with ripple effects:
“The bulls are running rampant and the bears have panicked,” said oil industry analyst Stephen Schork, editor of the Schork Report. “It’s pure hysteria, absolute panic,” he added.
The rally highlighted concerns that retail gas prices, which have surged near a nationwide average of $4 a gallon, will continue to crimp consumer spending and fuel inflation.
Stocks fell more than 400 points Friday due to the rally in crude prices and a report from the Labor Department that showed the unemployment rate rose to 5.5% in May from 5% in April, the biggest monthly jump in more than two decades. The economy lost 49,000 jobs, marking the fifth straight month of job losses.
The latest report from the Labor Department on the unemplyment rate, caused “Democratic leaders in Congress” to call for “new measures to spur economy and help unemployed.” America is swiftly sinking in the BushCo economy.
House Speaker Nancy Pelosi, D-Calif., vowed Friday to bring an unemployment bill to the House floor.
What a freakin mess! An absolute freakin mess!