Analysts: Uprising Spreads to Saudi Arabia Would Mean Oil $140–$200 a Barrel, Gas at $5…
Can you imagine the devastation that would do to our already floundering economy?
(CNBC) — The events unfolding in Libya mark the first uprising in a major oil producing country this year, giving energy traders their first indication of where crude could climb if Mideast turmoil were to spread to Saudi Arabia or Iran.
“Pricing in Libya supply disruptions is one thing, but what if this social unrest spreads to Saudi Arabia, which holds 20 percent of the world’s oil?” said David Rosenberg, chief economist and strategist for Gluskin Sheff. “Do the math: we’d be talking about $200 oil.”
Without taking into account the collateral effects of such a strategic part of the Middle East falling under siege by its own people, a simple production comparison gets the price to at least $140 a barrel.
Then there’s gas.
(USA Today) — Oil prices soared to the highest level in more than two years as violence spread in Libya and Moammar Gadhafi’s grip weakened. Only a small amount of Libya’s oil production appeared to have been affected, though analysts fear revolts will spread to OPEC heavyweights like Iran.
Benchmark West Texas Intermediate for April delivery jumped $4.59, or 5% to $94.30 per barrel on the New York Mercantile Exchange. The last time oil traded at that level was Oct. 2, 2008. The April contract traded as high as $98.48 per barrel.
“If this thing escalates and there’s a good chance that there’d be a shift in supplies, $5 gas isn’t out of the question,” says Darin Newsom, senior analyst at energy tracker DTN.
The average price of regular gasoline is expected to rise to $3.25 within a few days, says Tom Kloza, chief analyst at the Oil Price Information Service. That’s 2.5% above Tuesday’s $3.17 national average.
Posted by ZIP on Wednesday, February 23, 2011, at 9:36 am | 
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If we had a real President and a real Congress, we would be focused on a bipartisan plan to get ourselves energy independent in 10 years. Drilling, natural gas, nuclear, offshore, onshore — nothing would be off limits — we’d have jobs back and maybe our national spirit. Get out of the way, environmentalists, marxists, progressives, leftists and socialists.
Our gas went up 20 cents to $3.30 yesterday. The gas companies don’t wait for the price rise to hit them, they raise price on speculation. And they all raise the price at the same time, within an hour oe so. Price fixing?
@MN Jim
price fixing ? You betcha.
they raise their price without even getting a new shipment of gas.
DRILL HERE DRILL NOW!
nuff said
So the libs ridiculed domestic oil drilling after Katrina, saying we could not get oil from those wells for 8 years. Well, we’d be half-way there by now.
and with our government who gets free rides on air force one and you really thing they gotta pump gas into there own cars…pff ya rite , why would they care this is what they want a disaster to bring our country to its knees, we could be drilling but noooooo it could hurt the environment. wait is there something outta the gulf , nope not a peep sounds to me like its probably cleaned up just find down there…..fuck the unions fuck obama lets drill baby drill
You’re right 5 O’clock we MUST start REdevleoping our own resources. There’s enough oil , shale or Natural gas right here on shore in North America (US & Canada) to last us a 1000 years or more. and that is without drilling off shore in the Gulf or off either coast. Screw OPEC. Hell if we just turned the taps back on the wells that are shut down or limited production, we could get back in the Oil Business that THIS COUNTRY ted the WORLD in at one time. Before Carter and the Dept of Energy gas was $0.35 a gallon. I’m 65. I have been in and around the petroleum industry since 1950. I have paid as little as 6 cents a gallon for a fill up (1969). The more government involvement the higher the price and the less availability. PEOPLE it is time to get our house back in order. Educate yourself. Why has Socialism & Communism never succeded? It’s all pyramid scheme.
MN Jim says:
February 23, 2011 at 9:58 am
Our gas went up 20 cents to $3.30 yesterday
Yep my husband went to the gas station this am, the manager told him to gas up, he ( the manager) was getting ready to raise the price by 15 cents.
Last week I paid $3.38 a gal. add another 15 cents….Geeze! I can’t afford to pay attention now!!!!!
You have to admit, it’s kind of odd that the unrest has been largely successful in places where the United States was sending lots of aid…except Saudi Arabia.
Isn’t it a little weird?
It’s like Rahm Emanuel said:Never let a crisis go to waste!
The Department of Energy was created by Jimmy Carter over 30 years ago to get the US off foreign oil. How is that going? Well since then we have closed any drilling in ANWR in Alaska, and Obama put a stop on new drilling. Alaska has enough oil to free the US all foreign oil. It is time to tell the Feds to pack sand and we (Alaska) just start drilling without their permission. If Obama cant lead then get him out of our way.
Remember obama said he wanted gas priced to skyrocket.
we just thought he meant it for only America …But No, he is after the world.
Or should I say Soros is after the World.
CONTROL, CONTROL, CONTROL……RULE, RULE, RULE… THIS IS WHAT AMERICA IS COMING TO….WE HAVE OIL, DRILL, DRILL, DRILL….
AMERICA, THE TIME IS NOW, OBAMA IS DESTROYING AMERICA, EVERYONE KNOWES THIS, BUT NO ONE WILL DO ANYTHING TO STOP THIS? WE MUST BRING OBAMA DOWN……..OR KISS AMERICA GOOD-BY….
GOD HAVE MERCY ON ALL