Gasoline price goes up nationwide fueling speculation of power turmoil

Since the national average gas cost has been rising regularly for weeks, there is little reason to assume that it won’t reach $4 per gallon by this summer. Unrest in Libya and in Middle Eastern oil producing states has brought on the cost of petroleum to rise. Since gasoline is a petroleum product, the price of gas has been increasing at a faster rate than for crude oil. The federal government has said it is open to using its own oil reserves, should the market not be able to stabilize itself. Post resource – Gas price rises nationwide fueling speculation of energy crisis by MoneyBlogNewz.

Government contemplating use of crisis reserves

Oil costs went up significantly contemplating the Libya problems caused oil exports to be stopped completely. By summer, fuel prices could reach $4 a gallon at this rate, reports CNN. On Monday, March 7, the typical fuel prices were at $3.51. The prices have been going up every single day for the last two weeks. There has been a 34 cent total boost per gallon. Keeping these prices down is a goal the Obama administration has, states Reuters. The government as considered tapping into the U.S. Strategic Petroleum Reserve to stop the prices from continuing upward. Oil supply in the U.S. for the month is about 730 million barrels of crude oil. That is how much is found in the Reserve. Reserves will only be used if necessary, administration officials continue to say. The last release from the reserves was in 2005, after the Hurricane Katrina devastation, and it has only been used three times since it was established during the Nixon administration.

Prices increase

The Libya unrest caused many to be worried about the world oil market. The supply hasn't dropped at all though. Libya produces less than 2 million barrels per day, and exports little oil to the United States. Over 12 million a day is produced in Saudi Arabia. The Department of Energy made this comparison. The Saudi government has also increased oil production by 25 percent, which will cover any losses because of a drop in production in Libya. The rise of gas prices is not because of a shortage in supply; rather, markets are uneasy because political turmoil is spreading to other oil exporting nations. Saudi Arabia revolts would be a significant problem, although Libya revolts mean hardly anything.

Gasbuddy might help

The website Gasbuddy.com will help individuals discover the cheapest gasoline in their area. Fuel costs are reported in areas to Gasbuddy through many websites. Gasbuddy is everywhere. Hardly any U.S. or Canadian cities do not have information on there. The iPhone, Android and Windows smartphones can get a Gasbuddy app. Since Gasbuddy relies on people reporting the gasoline prices they see, the site is fast becoming a resource that is quoted by major news agencies also as a valuable tool for customers.

Information from

CNN

money.cnn.com/2011/03/07/news/economy/gas_prices/

Reuters

reuters.com/article/2011/03/07/us-usa-oil-idUSTRE7252X520110307?pageNumber=1

Department of Energy

eia.doe.gov/cabs/newint.html

Gasbuddy

gasbuddy.com/