A Simple Rule Of Thumb Regarding Oil And How It Impacts The Economy

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From Deutsche Bank, this is useful:

According to our analysis, a $10 increase in oil prices translates into roughly a 25 cent increase in retail gasoline prices.  Every one penny increase in gasoline is then worth about $1 billion in household energy consumption.  (In decimal terms, it is actually $1.4 billion.) Therefore, a sustained $10 increase in oil prices translates into $25 billion in additional household energy spending.  Assuming this price rise crowds out spending elsewhere in the economy, effectively acting as a tax, means that a sustained $10 rise in oil prices reduces annual real GDP growth by 0.2%.

Click here to see the 12 countries that will get slammed in an oil spike >

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