There was a time when oil prices needed the backing of a strong U.S. economy to reach record levels, but oil prices hit all-time highs again Wednesday even as a recession looms.
Clearly, a strong economy is still necessary to keep oil prices high, but it seems the United States is no longer oil's main driver.
"The really strong economy is on the other side of the world," said Peter Tertzakian, chief energy economist at ARC Financial, a Calgary-based private equity firm.
This article addresses the recent rise in the cost of a barrel of oil for the United States. According to the article, the US is losing its status as the "main driver" of the price of oil because of its weakening economy. This article also compares the anticipated growth of the United States's economy (1.8 percent) with that of the developing countries (an average of eight percent). This shows the staggering stagnancy that has developed in the US's economy. This article also compares the prices that United States's consumers are paying for gas with the prices others are paying. (The US price: $3. European price: $7. Chinese price: $2.65. Indonesian price: $1.82. Iranian cost: $0.42. Saudi Arabian cost:$0.45.) This comparison shows the amount of taxes the United States is paying for oil, and it also represents the severity of the inflation occurring in the United States.
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