Oil prices spiked to a seven-year high this week
High fuel prices could also increase the cost of living
October 19, 2021 / 02:29 PM IST
After the much-talked about Facebook-fueled selloff earlier this week, stocks rebounded yesterday across all major indices. Recovery stocks spanning the cruise, airline, and retail industries also rose.
Facebook CEO Mark Zuckerberg, however, publicly disputed the recent media reports and whistleblower testimony, which claimed that Facebook prioritised profits over user safety.
In other news, oil prices spiked to a seven-year high last week. U.S. prices are up 63% this year — a dollar more per gallon than last year. The spike is weighing on drivers’ wallets and boosting inflation concerns because higher prices mean pricier goods.
President Biden asked OPEC to pump up the production to keep the economic recovery on track. But OPEC’s powerhouses rejected the request – saying they’d make only gradual production increases to help prop up prices.
Demand for oil fell during the pandemic, when people stayed home and drove to the mall less. But demand rebounded faster than analysts expected. So to keep prices high and profits flowing, oil giants are capping supply. It’s paying off for oil companies, but costing everyone else.
For the week, the three bellwethers ended the week with synchronised, albeit marginal rises. The Dow moved up 1.2%, the S&P 500 gained 0.8% this week, while the tech-heavy Nasdaq gained a nominal 0.1%.
Google unveiled several new eco-friendly features to help its 1 billion plus users make more sustainable choices. Google Maps, for one, will soon show users in the U.S. the most fuel-efficient route. Google Maps’ alternative “green leaf” route will show how much gas you could save with minimal extra time.