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Oil price per barrel is moving trending up. Oil prices are trending upward as commodity values have been bubbling over. Last week, the Fed’s released their policy statement relative to quantitative easing. As such, the Federal Reserve has decided to initiate a new $600 billion program to aid the economy. The Federal Reserve plans to buy $600 billion worth of government bonds in an effort to decrease interest rates, make loans cheaper and ultimately stimulate spending across the American economic landscape. The expectation is that, due to the Federal Reserve's move to initiate further quantitative easing, interest rates will remain low for the long term and spending will increase. Federal Reserve Chairman is having to defend this plan however. Critics of the plan feel that the large amount of the greenback that is being injected into the economy could prompt inflation or bubble pricing of bonds and commodities. Crude oil is trading around $87 a barrel and unfortunately, gas prices often edge higher as the price of crude goes up. It is a parallel relationship. Gas prices have been high before however, much higher than they are currently and not too long ago. Consumer spending will remain stable relative to gas consumption until the price of cude oil goes up over $100 dollars per barrel. Author: Stephen Johnson
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