What I find remarkable about the 6% climb in NYMEX Crude Oil, from $98 to $104 just during the month of April, is that no one is talking about its impact on gasoline prices and connecting the dots, nor its potential impact on the U.S. economy.
Maybe the climb in gasoline prices of over 9% during April should be viewed in the context of an improving and strengthening US Economy?
If that is the case, then we don't have to worry about gasoline acting like a consumption tax, right?
Then again, the long end of the Treasury curve does not seem to want to embrace that conclusion just yet.
Frankly, neither does The Yellen Fed, which is to reassure us that it will remain super accommodative out to the end of 2015!
The bottom line for me is that for whatever reason gasoline prices have broken out to the upside after climbing over 9% during April, its impact should produce economic drag in the days and weeks ahead.