Oil prices top $91 a barrel

Much of the increase is due to encouraging reports about the economy, but if crude keeps going up - and gasoline to follow - it may actually put the brakes on the recovery. To what extent is a matter of debate - conventional wisdom has it that consumers will cut back on discretionary spending if they have to shell out an extra 10 or 20 bucks per fill up. But a growing number of economists say that the connection between oil prices and economic growth is not nearly as strong as it was 30 or 40 years ago (improving gas mileage plays a big factor). What's not in dispute is that pump prices are unusually high for this time of year - an average gallon of regular in the L.A. area is running about $3.25. That's still way lower than during the run-up of 2008. (DJ)



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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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