Oil Prices May Hamper Economic Recovery

One of the issues that may affect economic recovery is rising oil prices. Oil prices remain above $70 a barrel, after rising dramatically in the past three weeks. Higher oil prices are hitting American consumers, affecting their confidence and their spending. GFT's Boris Schlossberg reports in FX360 on the impact higher oil prices may have on economic recovery:

As oil creeps higher every penny rise in the price of gas is acting as a painful tax on US consumers and diverting disposable income from the pocketbook to the pump. The US consumer is already burdened with heavy debt load, and a near double digit unemployment rate, therefore the sharp spike in the price of oil is especially painful in the present economic climate.

While is slightly down today as the U.S. stock market turns mostly lower after a slightly up opening, oil futures are still above $70, and the forecast expects to see oil prices rise further by the end of the year.