Prices Jump at the Pump

By George Anderson

Oil prices reached a 28-month high yesterday as the prospect of a war in Iraq cast doubt on nations' ability to meet their supply needs.

Reuters reported "U.S. oil prices rose as much as 28 cents from the New York close to $36.05 a barrel, the highest level since October 2000, after government data showed U.S. crude supplies had dropped to their lowest levels since the 1970s Arab oil embargo."

Moderator's Comment: How will higher prices at the pump affect consumer attitudes and shopping behavior?

Two thoughts:

1. Talk of price gouging has already begun.
2. Kelley Blue Book recently released results of its New Vehicle-Buyer Attitude Study on SUVs. More than 50 percent of respondents felt the negative press from Arianna Huffington and others about SUVs and their owners is "hype." More than seven in ten felt SUV critics "ignored the vehicle's positive aspects." We wonder how the results of the same study will change if prices at the pump go up to $2.50 or $3.00 a gallon. [George Anderson - Moderator]

• GLOBAL MARKETS-Oil jumps, stocks slide as global tensions mount - Reuters
• Consumers Believe SUV Criticism Is Hype According to New Study - Yahoo Business