What would happen if the price of oil spiked during these economic times?

I would agree that it would hurt the economy which is likely why oil won't spike. The price of oil is partly a reflection of the economy (manufacturing) so the price will only go up if we are recovering.





Of course world events like catastrophic weather that directly effects oil production or wars will also effect oil prices but likely not substantially, nor long term.





Crude Oil is selling at $68.11 and most economists think it will reach between $75-80 before dropping down again. One of the reasons is that global reserves will be at their peak in a few months. If a country has no room to store oil then the price will obvioulsy go down with supply and demand. The second reason is that the economy can tailspin and potentially get worse. Manufucturing is still at a standstill and growth is expected to be very slow for the remainder of 2009 and 2010.





Oil will certainly reach levels that we had before (and then some) but I expect a drop or at least a fluctuation of the current prices that we have now.What would happen if the price of oil spiked during these economic times?
In general you're asking ';what happens if the price of something rises during a period of falling demand?'; The only thing that would create that condition is a major disruption of supply -- e.g. another war in the Middle East.What would happen if the price of oil spiked during these economic times?
MAYBE you'll soon find out!


Oil was up to $68.80, (slowly climbed from $59. a week before) On Friday 7/25/09 at Closing of the Market.


I'm glad my Second car is a Honda!
Decrease economic growth even further obviously.
Oil is going to go back up to maybe 80 dollars a barrel and then begin a multiyear slide back down.
Burn a couple refineries to the ground and find out.





;P

makeup