Could an Oil Price Spike be Headed for the U.S. Again?

oil-752566_640Most talk regarding oil prices right now is about if they will continue to drop and how long they’ll remain low. But there is another possibility – an oil price spike.

But given the seemingly ever-rising geopolitical turmoil emanating from the oil-rich Mideast, it’s dangerous to ignore the other possibility. What would happen if oil prices were to reverse abruptly and start leaping? It’s a worrisome thought, given that nine of the 10 recessions the U.S. has suffered since World War II were sparked by a spike in oil prices.

The example still fresh in many minds is what happened after the 1973 OPEC oil embargo against the U.S. and other countries in response their support of Israel in the Yom Kippur war. The effects of the significant spike in oil prices were numerous and dramatic, and the timing could hardly have been worse.

Find out more at CBS Money Watch.

Photo courtesy of: Moni49