The latest surge in oil shook stock-market investors’ confidence, though economists said most U.S. consumers and businesses appear to be absorbing higher energy costs surprisingly well, the Associated Press reports. U.S. gasoline demand continues to rise in spite of near $3-a-gallon pump prices, core inflation remains relatively low and the U.S. economy is forecast to grow by roughly 3 percent in the second half of the year.
Light sweet crude for August delivery settled at a new high of $76.70 a barrel on the New York Mercantile Exchange, then continued climbing in after-hours electronic trading, when volumes are significantly lower, to $78.35. The rally came as fighting between Israel and Lebanon intensified, explosions hit Nigerian oil installations and a diplomatic standoff dragged on between the West and Iran over its nuclear program.
