Crude Sense or Crude Nonsense?
- In the past, rising oil prices typically had an adverse effect on the economy as consumers and corporations reined in spending to cover the increased cost of fuel. However, the recent steady rise in oil prices is not having the same impact on U.S. and global economies as it has in the past.
- The U.S. economy’s overall sensitivity to oil prices has evolved as the United States has developed to become the world’s second-largest oil producer.
- Charles Schwab’s Chief Global Investment Strategist, Jeffrey Kleintop, said: “The doubling of U.S. oil production over the past decade means U.S. energy businesses stand to benefit from higher oil prices, and the tax cut in the U.S. is helping offset the higher prices at the pump for U.S. consumers.”