Oil
By Bob
With Katrina bearing down on the gulf coast, some commentators have noted that this could possibly have economic consequences. A large percentage of the domestic oil production comes from this area, 25% is the number I saw today. The overnight oil futures are a few cents short of $70 after trading as high as $70.75. Where as most of the rise in oil prices were the result of increasing demand, this storm could possibly cause a supply shock. This could finally cause some negative economic consequences that people have been predicting but have yet to come to fruition. Our prayers are with those still in New Orleans and other communities in Katrina's path.
In other news, the headline from this MarketWatch seams downright pressimistic. Although, the article itself isn't as glum. It seems that attendees of the Fed's confab iin Jackson Hole aren't in agreement as what the future holds for the economy. The greatest threat it seems to me is rising interest rates. Oil, as mentioned above, doesn't seem to be causing problems yet.
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