Oil Prices Drop on Fed Chair's Comments

[NVMojo]

July 21, 2006

SINGAPORE (AP) -

Crude oil prices fell Friday following comments by the U.S. Federal Reserve chief that surging energy prices are crimping growth even as they push up inflation, and that oil demand was decreasing.

snip...

Federal Reserve Chairman Ben Bernanke said Thursday "the increase in energy prices is clearly making the economy worse off both in terms of real activity and in terms of inflation. There is no question about it."

If oil prices were to rise another $10 or $15 a barrel, there would be "significant consequences" for the economy, he added. He said high energy prices are already hurting the economy, "in terms of real activity and in terms of inflation."

"We are seeing some reduction in demand for oil, perhaps less than we would like," said Bernanke, speaking before the House Financial Services Committee.

more...

http://www.lasvegassun.com/sunbin/stories/invest-corp/2006/jul/21/072103343.html

[fasttense]

1. And the Stock Market drops. n/t

[Betty]

2. well they don't drop at the pump

not at all.

[RangerSmith]

4. that sucks

they do here... rise and fall weekly following the ups and downs of the barrel price.

[Roland99]

3. Chopper Ben has that much power already?

:eyes:

Perhaps the speculators are just taking a breather and letting prices drop a bit just to lull us into thinking $2.80/gal is cheap.