Traders of crude oil and natural gas react during early trading at the New York Mercantile Exchange on Monday, Jan. 31, 2011. Brent crude oil topped $100 for the first time since 2008 as investors kept an anxious eye on Egypt and worried about unrest there disrupting the flow of oil from the Middle East. Brent is the benchmark for oil prices in Europe and Asia.(AP Photo/Bebeto Matthews)By JEANNINE AVERSA and CHRISTOPHER S. RUGABER
AP Economics Writers
WASHINGTON – Just as the U.S. and global economies are finally strengthening, they face a new danger: Rocketing oil prices, which topped $100 a barrel Wednesday.
The U.S. economy can likely absorb $100 oil and keep expanding, even though gasoline prices would rise further and growth would slow. But it would hurt.
Gasoline for U.S. motorists already costs more than at any point since 2008, despite ample supplies. The national average for a gallon of unleaded was $3.19 on Wednesday – 53 cents more than a year ago. Analysts expect the average to range between $3.25 and $3.75 this spring.