On Energy Source:
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Steven Kopits of Douglas Westwood Energy research discusses this urgency in a new report, noting that in the last 37 years, the US has suffered six recessions. From the beginning of each, he says, oil played a central role. In every case when oil consumption breached 4 per cent of GDP, he notes, the US has suffered a recession. Indeed, he says, the current US recession began within two months of oil hitting the 4 per cent threshold, when oil reached $80 per barrel.
Kopits also notes that a sustained rise in the oil price of 50 per cent or more has always been associated with recession, and this applies to the current recession as well. Read more
Oil rose back towards the $69 mark on Thursday as further attacks on pipelines in Nigeria by militants helped reverse losses caused by a sharp jump in US fuel stocks.
Crude had dipped on Wednesday after weekly US supplies data showed gasoline stocks hit 3.9m barrels as refiners ramped up production ahead of the peak summer driving season, and distillates stocks rose to the highest level in over 10 years. Read more
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