Forget $100 oil. $80 oil is a problem

Energy prices don’t need to rise that much before a fragile consumer-led economy could face another setback.

NEW YORK (Fortune) — Are cash-strapped American consumers on for another date with energy price misery?

The U.S. economy remains weak and one in six Americans can’t find enough work. Yet oil prices have risen steadily this year. A barrel of crude costs $79 and change, more than double its price at the end of 2008.

This year’s runup pales in comparison to the one that peaked last summer above $145 a barrel. Even so, some researchers warn we could once again be approaching the point at which rising energy costs will squeeze consumers.

That could complicate recovery in an economy that, despite the tumult of the past two years, remains as consumer-driven as ever.

“If you had to ask me what is the safe driving speed, I’d say $80 a barrel,” said Steven Kopits, managing director at energy market forecaster Douglas-Westwood in New York. “We have bigger problems right now, but we shouldn’t forget we’re still vulnerable to rising oil prices.”

CNN