Oil prices jumped $11 a barrel to a new high above $139 a barrel. An analyst from Morgan Stanley predicted prices could reach $150 by July 4. According to WTAE in Pittsburgh:
A falling dollar and growing tensions in the Middle East are also pushing prices higher.
Light, sweet crude for July delivery has traded as high as $136.62 on the New York Mercantile Exchange. Prices hit a previous record of $135.09 a barrel on May 22.
There’s more bad news:
Congressional auditors said that if oil and natural gas prices stay as high as they’ve been in recent months, the government could lose as much as $53 billion over the next 25 years in energy royalties because of an adverse court ruling.
The Government Accountability Office said the soaring price of crude oil and natural gas also means the windfall that companies will enjoy from the court ruling also could increase by billions of dollars.
The impact on the American economy will be staggering. Prices in all areas will rise even more, while the value of the dollar continues to fall.
Currently, $1 American will buy €0.6342.