Exxon (XOM) CEO Sees Oil Prices Entering Dangerous Zone

Exxon Mobil (NYSE:XOM) CEO Rex Tillerson says at this time the rising price of oil is still not doing too much damage to the economy or American consumer, but as it approaches $4 a gallon, it will definitely have a detrimental effect.

At this time oil is at close to $104 a barrel, with the national average for gasoline standing at $3.52 a gallon. And the price is expected to increase through spring and into summer.

Citing the last time gasoline prices hit $4 a gallon, Tillerson said he saw driving and spending habits of consumers changing at that point. Many in the tourism industry at that time can attest to that fact.

Average American families will face "some real challenges" if gas moves up to that level again, concluded Tillerson.

In July 2008 gas prices peaked at $4.11 a gallon.