High oil prices possible economic problem

NEW YORK, Oct. 15 (UPI) -- Crude oil prices, if they remain above $50 a barrel, could begin to take a toll on the nation's economy, a Wall Street Journal survey shows.

According to 54 economists in the Journal's economic forecasting survey, a sustained move into the range of $50 to $59 a barrel would force a reduction in their gross-domestic-product forecasts for that quarter by a half point.

On election matters, nearly half of the economists surveyed said President Bush would do a better job than John Kerry in sustaining and improving economic growth.

"Rising oil and energy costs and their negative effects on economic growth, inflation and profits constitute the biggest risk to (the economy) since the bursting of the stock-market bubble in 2000-2001," said Allen Sinai of Decision Economics in New York.

Crude currently is running just under $55. But, some say they expect a retreat closer to a more sustainable level of $40 to $45 a barrel.