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Oil price surge could dampen global recovery
http://bottomline.msnbc.msn.com/_news/2012/02/17/10435968-oil-price-surge-could-dampen-global-recovery&width=600
A surge in oil prices sparked by saber-rattling from Iran is beginning to weigh on the global economic recovery, with potential ripple effects on consumers, corporate profits and interest rates.
Drivers already are seeing the impact at the pump, where prices have risen by an average of 12 cents per gallon in just three weeks to more than $3.50 a gallon, according to a report out this week. Crude oil prices rose for a third straight day on U.S. markets Friday, topping $103 a barrel, and remained on track for a second straight week of gains.
The cost of crude has been rising steadily since hitting a seasonal low in October, gaining upward momentum on escalating tensions with Iran after a series of moves by the U.S. and European Union to pressure Tehran to shut down a uranium enrichment program aimed at producing nuclear weapons.
The moves sparked fears among oil traders that Iran, the world's fifth-largest oil producer, may retaliate by disrupting the flow of oil through a critical Persian Gulf shipping channel.