Oil’s upward climb continued today, hitting above $73/barrel, on forecasts for higher world oil demand by the International Energy Agency, according to MarketWatch. The outlook for oil could affect the overall economic outlook. In our July Markets story, our experts will discuss the how the energy outlook will impact the broader economic picture and the forecast for interest rates through 2009. One economist said that the rise in oil prices was actually a positive sign, as rising commodity prices signal improvement in the U.S. and global economy. However, rising commodity prices also could be a reaction to a weakening dollar and expectations for an increase in inflation.
For our full mid-year economic outlook, check out the July issue of Futures magazine, online June 25.
