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As the cost of a barrel of crude oil surpassed $70 on global financial markets, both CBS and ABC reflected on the impact on the price at the pump. ABC's Dan Harris used the statistic that the national average price of a gallon of gasoline has risen for six straight weeks, now standing at $2.63. CBS' Dean Reynolds called the climb of $1/gallon since December "the largest, over a six-month period, in history."
Is conventional supply-and-demand at work here? ABC's Harris thinks so: "OPEC countries have cut back on their oil production." CBS' Reynolds was not sure. "Demand right now is flat," he asserted. He suggested the weak dollar as one reason for the hike; the other is financial speculation. "Investors are driving up the price further by buying more oil as they see signs of an economic recovery and the potential for increasing demand. Of course the rising price could stall the very recovery they are anticipating."
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