Brent crude climbed to nearly $110 a barrel on Monday, its highest level since May, before easing to around $107. Unlike past oil shocks, economists say the $100 threshold is less alarming today, as the share of U.S. income spent on gasoline has fallen from 6% in 1980 to 2.5% now. The real concern lies in the surge of gasoline and diesel prices, which have hit records: regular gasoline approaches $4.43 a gallon versus $3.20 a year ago, while diesel reached $6.39 a gallon. Oxford Economics estimates that sustained prices could shave a few tenths of a percentage point from consumer spending growth next year, with lower-income households bearing the biggest burden.
Source: Read the original article
