OIL NEAR HIGHS FOR YEAR

Where is the tipping point. If oil prices continue to rise our economy will shut down. I have been forced to continue to lower prices to the consumer because of lack of demand and competition from laid off workers. I'm a carpentry contractor. I cannot afford additional cost without being able to pass them on. If the cost of fuel goes up there will be less demand for my services because people will have less money. There will be more competition because more will be laid off and will start to work on the side. If I lower my prices further it will cost me more to do the job than I make. I'm already working at cost.

My business is no different than most others, just a whole bunch smaller. The problems that I face are being faced by all companies to some extent. So, what is the tipping point? What price at the pump will drive the final nail in the coffin of our dying economy?

"Oil prices neared new highs for the year Tuesday as the dollar slipped against other major currencies, demonstrating how much the weakened U.S. currency can affect consumers globally.

The U.S. dollar index, where the U.S. currency is measured against other major currencies, hit a 14-month low Tuesday. Because crude is bought and sold in dollars, it essentially becomes cheaper for international investors who have flooded into energy markets despite a big surplus of oil.

Energy experts expect the government will report Wednesday that crude supplies are still growing, but that does not appear to be a deterrent for many investors because the dollar is so weak."

Yahoo