Juli Niemann: When will we see price spikes at the gas pump
Juli Niemann: When will we see price spikes at the gas pump
TEXT OF STORY
JEREMY HOBSON: Now let’s bring our regular Tuesday market analyst — Juli Niemann of Smith Moore and Company in St. Louis for a look at how this might affect us here in the U.S. Juli, we’ve already seen oil prices going up. They’re up above $100 a barrel over seas. Do you think this is going to be a problem for our budding economic recovery here?
JULI NIEMANN: It will. Because the change of consumer behavior lowers confidence, people drive less, they spend less, they have fewer coins in the jeans. So consumer spending on the surface could stay up, but it’s going into the gas tank, not into the shopping cart. And that’s not what we need for a good recovery.
HOBSON: And Juli how long do you think it’ll take for us to notice any rising prices at the pump as a result of rising oil prices?
NIEMANN: Well, typically it’s about $60 days from the well head to your gas tank. And half of that is about the price of crude oil. But demand and supply are pretty much constant right now, and if retailers see hikes coming, they will take the prices up early because they’ll be paying more for the next load. So look for them to start hiking right away to pay for the next more expensive load. It’ll be at your gas tank very soon.
HOBSON: Something to look forward to I guess. Juli Niemann of Smith Moore and Company in St. Louis, thanks so much.
NIEMANN: You bet.
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