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Economy

As Crude Moves Above $78, Recession Shadow Grows

Photo of Douglas A. McIntyre
By Douglas A. McIntyre Published
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Oil traded above $78 today. Explosions on Mexican pipelines and a tight-fisted OPEC has driven prices higher. An unstable government in Nigeria and an equally unstable president in Venezuela have not helped. And consumption in places like the US and China does not appear to be abating.

As the reasons for increases in oil prices pile up, the reasons for oil prices to stay high multiply. Refineries are down more often for repair and upgrades. Oil becomes a pawn in relationships between governments. Terrorists see the leverage in interrupting supply.

Home prices are already dragging the US economy down. A long-term increase in fuel costs would hurt the recovering auto industry, airlines, and large retailers. Any or all of these industries would react to a slowdown by cutting jobs.

To a large extent, the increasing price of oil has been ignored by US consumers. It has not been quite high enough to affect the overall cost of living.

That is almost certainly about to change.

Douglas A. McIntyre

Contact [email protected] for any questions or corrections.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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