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Libya Chaos to Drive US Gas Prices Higher

Filed under: Breaking News,Business,Deaths,Economy,International News,Politics,Threats and Tensions,Violence,World — Tags: , , , , , — Positronic Dave @ 6:03 am February 21, 2011

For almost a week now, since the craziness in Libya has unfolded and the true extent of the carnage is becoming known, oil futures covering April have risen steadily, including a greater than 2% jump after Col. Death’s male spawn declared that “civil war” would result unless the protesters returned to their homes.

Libya is the 8th biggest exporter in the OPEC cartel, and there is substantial concern that the pandemonium on the streets will spill over into the regular business of cranking out the oil. This has driven prices over $91 a barrel, gaining almost two dollars today alone. All this while it’s still only theoretical. Should things actually affect production or export of black gold, then the prices will shoot up even more dramatically.

All this will translate into higher gas prices back here at home, since oil companies can always be counted on to add a little bit of profit (or a lot of profit) on top of the additional expenses incurred, since they’ve got the perfect excuse to jack up the rates and just shrug and say “wadda you want, there’s a crisis?”

Here’s the latest video on the Libyan crisis: