Oil prices climb to Katrina levels

Crude oil has soared more than $7 a barrel since the new year began, alarming Wall St.

NEW YORK
On Friday, rising oil prices and disappointing earnings sent the Dow Jones Industrial Average into a 213 point dive, one of the sharpest declines since spring 2003. One reason for Wall Street’s concern: if the price of oil stays high, it will take money out of people’s pockets in a year when consumers are expected to moderate spending anyway.

“Consumer spending may slow down a bit more than thought,” says David Wyss, chief economist at Standard & Poor’s in New York. “But, it won’t drive us into a recession – that would probably take oil going well over $100 a barrel.”

Christian Science Monitor