Economic Stimulus Plan Creating High Oil Prices

by John Astad | January 25, 2008 at 11:40 am

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Tax rebates for 2008 are great but not when this incentive causes additional demand for global oil resources while Americans continue fueling their gas guzzling SUV's and pick-up trucks. The $150 billion stimulus plan that Congress has created would be put to better use in developing regional mass transportation solutions.

investors believe the government's $150 billion stimulus plan and the Fed's rate cuts will stave off a serious economic slowdown, rate cuts also tend to weaken the dollar, giving investors another reason to buy oil futures.

So now oil future prices are the rise again creating an additional burden on the consumer with fuel purchases eating more and more into their descretionary income.

Energy futures prices posted the biggest gains in 3 weeks with crude futures jumping more than $2/bbl Jan. 24 after President George W. Bush and Congressional leaders agreed to an economic stimulus package that will give tax rebates to most US taxpayers.