The national average fuel price is all however certain to hit $4 a gallon by summer. The price of oil has been increasing due to lower oil production and exports in Libya and Middle Eastern countries affected by political unrest, and as gasoline is a petroleum product, its cost is increasing also. The oil reserves held by The United States government may be utilized by the Obama administration should the industry prove inept at curbing rampant panic. Post resource – Gas price rises nationwide fueling speculation of energy crisis by MoneyBlogNewz.
Is this a reasonable emergency for crisis reserves?
Oil costs went up drastically contemplating the Libya problems brought on oil exports to be stopped completely. By summer, gas prices could reach $4 a gallon at this rate, states CNN. On Monday, March 7, the average fuel costs were at $3.51. There has been a 34 cent boost in the last 2 weeks while every day the costs go up. Reuters reports that the Obama administration is contemplating using the U.S. Strategic Petroleum Reserve to be able to stop this boost. About 730 million barrels of crude oil are found in the Reserve which is equal to a month of United States oil supply. However, administration officials maintain that reserves will only be used if needed. After being established throughout the Nixon administration, the reserve has only been used three times, one of which was in 2005 during the hurricane Katrina disaster.
Prices go up drastically
A drop in supply has not caused the world sector for oil to become worried which occurred every since the unrest in Libya. Less than 2 million barrels a day are produced in Libya. The U.S. does not even get most of it. The Department of Energy states that Saudi Arabia produces over 12 million a day. A 25 % increase in oil production was changed in Saudi; this more than makes up for Libya losses. The rise of gas costs is not due to a shortage in supply; rather, markets are uneasy because political turmoil is spreading to other oil exporting nations. It doesn’t really matter that Libya revolts are stopping oil production. If the exact same thing were to happen in Saudi Arabia, there would be a serious issue.
Getting the right cost from Gasbuddy
The site Gasbuddy.com will help individuals discover the cheapest gasoline in their area. Gasbuddy is a network of sites where members report gas prices that are in their area. There are not very many places in the United States and Canada that don’t have information in them since Gasbuddy goes throughout the whole country. The iPhone, Android and Windows smartphones can get a Gasbuddy app. Major news agencies have started using Gasbuddy in reports while consumers are using it regularly.
Department of Energy