Fed Chief Ben Bernake said surging energy prices are acting like a double whammy on the country's economy, crimping growth as they push up inflation. Unspoken is the fact that surging energy prices include a similarly surging profit margin for most oil and gas companies. Just months ago Bernake’s boss, President Bush found no problems in record profit for the integrated oils. Will the Benster get in trouble with the Bushmeister for tangentially disagreeing with his boss? (I love nicknames as much as the President)
Watch oil company profits for the 2nd quarter. My guess is they will set record levels. My prediction calls for 3rd quarter profits to decline. It would not do to enter the November elections with that fresh on the voter's minds.
Update: I just found an article on Yahoo estimating the 5 largest oil companies will earn 33.6 billion in the second quarter, up 32% from a year ago. It appears my guess is right, unfortunately.