Higher oil prices could derail the economy. European oil prices jumped early today to $117 a barrel and while U.S. prices are below $100, don’t expect us to stay at these levels. Banks say $120 oil will kill the recovery.
For us consumers, the pain starts even earlier. For every penny increase in gas prices, US consumer disposable income drops by $600 million a year.
Given the fact that consumers are responsible for 70 percent of GDP, that’s a problem!