How do rising energy prices affect the economy?

Energy prices are starting to soar again.

Oil prices, for starters, have broken free of the fundamentals that usually rule the market and are rising despite a glut in surplus crude oil. Benchmark crude climbed to its highest level in eight months yesterday, touching $73.23 a barrel on the New York Mercantile Exchange.

Gas prices at the pump have been surging, too, reaching a national average of $2.63 a gallon, with Richmond-area prices nearly 20 cents cheaper.

What could spiking prices mean for a country trying to break free of a recession? Is there a risk that expensive oil and gas will make it harder for the economy to recover?

Here are some questions and answers about the economic consequences of high energy prices.

How do rising energy prices affect the economy?

Americans buy so much gasoline that a $1 increase in pump prices means a $140 billion annual hit on the economy. That's $140 billion that won't go into savings accounts, college funds, restaurants or toward movie night. And economists believe that more spending is what is needed to help pull the country out of recession.

Rising gas prices, along with high unemployment rates around the country, likely will force a lot more belt-tightening this summer. This year, though, consumers may have a much milder reaction to expensive gas than they did last year, when oil spiked to more than twice its current price, UCLA economist Edward Leamer said.

"The first time you get slapped in the face, it hurts," Leamer said. "The third or fourth time, it feels kind of normal. So that's what you're seeing now. You don't see people getting as irate when they see the price of gas go up."

Which industries are most affected by rising energy prices? And if I work in an unrelated industry, will I feel the effects?

Energy-intensive industries such as shipping companies, airlines and trucking companies are hit hardest -- but it does filter down to nearly everyone. For example, airlines pointed to higher fuel prices last year when they cut flights to smaller hubs and started charging for checked bags, better seats in coach and other items that were once free. When oil prices dropped earlier this year, many of the fees remained. Does all this mean it might take longer to emerge from the recession?

It's possible. Spending more on gas, heating oil and other petroleum products can leave businesses with less money to hire new workers or give raises. Consumers would have less to spend as well, and the economy would take longer to heal.

If we're in a recession, why are energy prices spiking -- and how long can this go on? Am I going to be paying $3 for a gallon of gas? How about $4?

Energy prices can fall when an economy slumps, as manufacturers shutter factories and laid-off workers keep their cars off the road. But gas prices usually rise in the summertime as leisure travelers hit the road and refiners switch over to more expensive blends of gasoline for environmental reasons.

Many experts are predicting a gradual drop in gas prices this year. However, many states like California already are seeing prices of $3 a gallon in some places.