Oil hits $60 a barrel (USD)

In the U.S. at least, it's been consumer spending and not capital investment that has helped avoid recession. If oil rises to $100 per barrel, Americans may redirect their dollars from Wal Mart and the mall to gasoline and fuel oil. Alternatively, folks may continue to rack up their credit cards, refinance their homes (again), and just roll the bills into the mortgage. Either way, it's not a good situation.

I would have to get a HOG to get to work.

I asked a co-worker how much gas would have to be a gallon to bike the 15 miles to work. Personally if it gets to $4 a gallon I'm getting a bike.
The good thing is once fuel gets up that high, Bio Diesel and Ethanol will hopefully become more prevalent.

The price of oil has risen to new highs despite larger inventories than a year ago. The oil analysts have started using a lack of refining capability to justify the high price. The problem is, http://http//www.blogginwallstreet.com/2005/06/mar ket-myth-busting.htmlrefining problems don't exist, this is a myth. Their could start to be refining issues in 10 years or so, but not in the near term. This run is pure speculation and momentum. There are no fundamentals supporting it.

Fromer government officials running a "war game" scenario with oil at $120 a barrel.

"The former officials role-played a Cabinet faced with a series of upheavals that, over six months, push oil prices to $120 a barrel, double the current record-high price. Cost of gasoline: $5.30 a gallon.

The exercise - sponsored by Securing America's Future Energy and the National Commission on Energy Policy, private organizations that have been lobbying for increased attention to energy policy - began with civil unrest in Nigeria, a key supplier of the sweet crude used in U.S. gasoline.

That was followed by al-Qaeda attacks on Westerners in Saudi Arabia, and a terrorist incident at the Valdez oil port in Alaska. By the end of the exercise, according to economic projections prepared for the group, the U.S. economy was in recession; home heating-oil costs had more than doubled; and the price of filling a midsize SUV's tank had risen to $125.53.

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