Thursday, July 11, 2013

We could be heading for $4 per-gallon of Gas..Why does this have to be?

Right now, when you pull up to the gas pump everything seems fine, if you don’t mind paying more than $3 per gallon. 
However, with yet another crisis in the Middle East (in Egypt this time), oil has quickly jumped to 15-month highs, at more than $103 a barrel. 
This can only mean one thing: The price signs will be changing at the pump — perhaps as you read this. 
Sure, all the politically bent economists will claim that the US is well supplied with good inventories. 
But remember, there has never been a time in history when crude-oil spikes and gasoline prices have remained constant.
Egypt is not an oil-producing nation, but its neighbors are. And Egypt controls the Suez Canal, its lifeblood and the gateway through which much of the oil travels. 
Back here in the US, gas price futures indicate a 6 percent rise to come at the pump and certainly more if Egypt spirals further out of control or into a civil war. 
Under those circumstances, a 10 percent rise would be considered quite modest, but that takes an already needlessly expensive $4 a gallon number to $4.40 and a $60 fill-up to $66. That’s family money, movies and meals. 
Which begs the question: Why are we still importing our oil from the most violent and unstable region of the world — a region in which many frequently proclaim their wish for us to be abolished from the face of the earth — when we have our own oil to produce?
Read the rest of the story HERE.

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