Pros Say: Oil Above $70 Could Crush Recovery
The price of a barrel of oil rose to a near eight-month high above $72 Thursday, giving investors and consumers alike a stark reminder of last summer’s unprecedented surge to more than $147.
The oil price rally comes at a delicate time for the economy, in the midst of the worst recession in generations. And experts told CNBC that the move risks sideswiping all of the tentative signs of economic recovery.
Oil Above $70 a Risk to Recovery
Rising oil prices will have a huge impact on the U.S. consumer and pare back the tentative recovery, Michael Yoshikami, founder, president, and chief investment strategist at YCMNET Advisors, told CNBC.
Oil's Rise May Undermine Recovery
Nobuo Tanaka, executive director of International Energy Agency, says oil's rapid rise without demand increase and robust growth may undermine economic recovery.
Will High Oil Drag on Equity Markets?
There are enough "green shoots" coming to provide some stability to equities, says Michael Yoshikami, founder, president, and chief investment strategist at YCMNET Advisors, but oil at $70-80 could mean headwinds for businesses and consumers.
Oil's Massive Movements Tough for Airlines
Tony Tyler, CEO of Cathay Pacific, told CNBC that oil price volatility makes it difficult for airliners to have a hedging program that works well in all circumstances.
Is Alternative Energy Worth Investing In?
Alternative energy is a promising industry but it is not financially reasonable to explore this space unless oil hits $75-95, says Michael Yoshikami of YCMNET Advisors. He tells CNBC a safe way for investors gain exposure to this industry.
Pull the Plug, Let Markets Decide
Take out government intervention, and allow market forces to play out so the U.S. economy will adjust and have sustainable growth, says Kirby Daley, senior strategist at Newedge Group.