Insomnia (insomnia) wrote,

Oil prices go through the roof.

The price of oil hit $44.98 a barrel today, the highest price ever posted on the New York Mercantile Exchange, after Sadr's uprising forced closure of the oil pumps in Southern Iraq.

"Pumping from the southern oilfields to storage tanks at Basra was stopped today after threats made by Al-Sadr," the official told Reuters. "It will remain stopped until the threat is over."

Did you know that each $1-a-barrel increase in the price of oil is equivalent to a $3 billion tax on the US economy? The average price of Iraqi crude in January 2002 -- before war seemed inevitable -- was $17.70 a barrel. That means an increase of approximately $27.30 a barrel since that time, or an increase in costs to consumers of approximately $80 billion dollars a year.

Add in the cost of the war, and you're talking over $4,000 a household. That pretty much wipes out Bush's tax cut for everyone except the rich, doesn't it?

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