Oil Remains Elevated

Includes: OIL, UGA
by: Hale Stewart

The first chart below shows that the price of oil remains in the 104-108 area, and has been holding this level for the last month or so. The good news is the 108 handle appears to be containing prices for how. The bad news is oil remains over $100/bbl.

So far, this is having a muted effect on gas prices. The 2012-13 line shows that national prices are slightly about the $3.60 level. On the plus side, we're winding down from the "summer driving season," which usually ends around the Labor Day weekend. However, there is still the Middle East situation hanging over our heads. As we've noted before, at some point the oil choke collar will start to tighten on the recovery, negatively impacting consumer spending.