Posted March 26, 2012 14:29

Oil has been skyrocketing for the past few weeks. Not only has this caused pain at the pump but it has led to lots of volatility in the oil market. Over the past few days, the price of WTI has gone down slightly but rests at over $106 per barrel.

There are so many contributing factors that have caused this oil debacle. But the main reason is the threat from Iran to close the Strait of Hormuz. Now with all of this volatility, there are many speculators saying that the next stop for oil is $170, that’s right $170. If WTI actually reached this level, a gallon of gasoline would cost over $7. Gasoline at $7 per gallon could reinforce the idea of a global recession.