At one point soon, some folks (think Wal-Mart worker) are gonna have to decide whether they're better off driving to work, or just not working. And those far-flung homes in places like Maricopa Arizona? Getting more and more worthless by the day.
Some experts are crying "bubble" and saying the price is gonna collapse soon. Others are pointing to the millions in India and China lining up to get into cars, and the lack of an energy policy in the USA.
I'm not sure, but it does look like a bubble. But I think we all know now that bubbles can go on longer than anyone ever thought possible. I happily hardly ever get in a car, and consume or purchase very little, so it doesn't hit me much, but $117 oil means pretty much everything will be going up in price. $200 oil? That's another ballgame.
Experts divided on how high oil will go
As prices in New York reached a new high of more than $116 US per barrel Friday, finding common ground among observers proved difficult.
For oil price analyst Walter Zimmermann, a New Jersey-based vice-president with ICAP United, $125 US is the magic number at which technical and psychological forces will reach a "crescendo" and create a new market reality.