For every dollar the price of oil increases and is sustained for a year, the USA exports about an additional $4.5 billion for our oil habit.
Brent oil has skyrocketed by $30 or 40% over the last year and West Texas Intermediate has jumped $15 per barrel.
Using the Brent benchmark of $106, Uncle Sam will spend about $480 billion for foreign oil over the next year.
The $30 Brent increase over the last year means that we will send overseas about another $135 billion per year.
Our economy cannot afford these prices. They explode our trade deficit that kills jobs here in America.
Just look at heating oil prices. The have been higher this February than in the February of 2008: the year of nose bleed oil prices. Many families are paying $3.58 or higher for heating oil or $3,000 per winter.
On a pre-tax basis, a median income family must allocate 6% of its income to heating oil. On an after tax basis, oil heating bills could require about 10%. All that income going for oil and most of it heading overseas means less for other goods and services right here. High oil prices cripple our economy.