A recent study in the UK says that the country will lost 1.5% of its GDP is oil stays above $100 for any extended period. According to The Guardian "half of this coming from higher domestic fuel bills, meaning consumers have less money to spend on other goods and services."

Even though some movement in oil is based on using it has a hedge against the falling dollar, a haircut of 1.5%, if applied to the US economy, could be the difference between very slow growth and the two months of negative growth that would define a recession.

Perhaps the world’s nations could get together and outlaw hedging

Douglas A. McIntyre