Libya’s Issues May Pimp You at the Pump
Matt | On 23, Feb 2011
This is a fair warning to everyone who has been keeping up with the crisis in Libya.
The world’s 12th largest oil exporter is already causing some issues and high blood pressure in the world’s oil markets since unrest began there in recent days. The sheer scope of the tragedy can and has disrupted some oil production in the country. Add to that an oil market that stays nervous as hell over the slightest thing, and it’s a disaster waiting to happen.
U.S. light sweet crude oil is currently trading at $95.45/barrel. That is the product we use to make gasoline, etc. Today’s price is 20% higher than this time last year. With the summer driving season approaching and this mess going on in Libya, many of us will be breaking our piggy banks (or sliding down a pole) at the pump very soon, if not already.
This is just what we need. It’s bad enough that experts and the media use warm weather as an excuse for insane ass gas prices. Now they might think they have a legitimate reason or two for price gouging.
To be fair, Libya only produces 2% of the world’s oil output. But still… We ALL use oil. This has a domino effect. *sigh*