I'm worried that the US economy could take another oil-related hit this summer. With prices reaching about $82.50 yesterday, and the summer driving season ahead of us, what will happen when peak gasoline consumption hits this summer? Typically, oil/gas prices rise beginning in late March, in anticipation of the higher demand during summer months. If this happens, then we could see crude oil prices of $100+ per barrel this summer, and this type of price rise in 2008 was a significant contributing factor to the collapse of the US economy in late summer 2008.
This is also particularly striking this year because the Dollar has been rising due to concerns about burdensome debt in the Eurozone, especially in Greece. If the price of crude is strong, even in the face of a strong Dollar and winter usage, what will happen in summer, and what will be the economic effects?
