Gas Prices Could Reach $5 Per Gallon By Summer
Back in the 1900s, Porsche created the first ever hybrid vehicle, something that, at the time was unneeded, as the internal combustion engine was just getting its wings. Now, that design might be more popular than ever as gas prices could reach extraordinary levels.
Due to the political unrest in the Middle East, gas could hit the $5 per gallon mark by the summer, putting a quick end to road trips and family vacations. In recent weeks, gas prices have climbed to a two-year high, making it difficult to drive anywhere without a fill up in the back of the mind.
Industry analysts predict that if the political unrest in Libya spreads into the other oil-rich countries, such as Iran, gas prices could touch the $5 per gallon mark by the peak-driving season in the hot months of the summer.
Luckily, the unrest in Libya has not had an affect on the country’s oil production, but that could change in just a few weeks, rising up the gas prices to massive highs.
“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,” said Darin Newsom, senior analyst at energy tracker DTN.
This week, gas prices in the United States have climbed to an average of $3.29, but in some places the price can be as high as $3.39. Within a few days, the national average is expected to rise to $3.35.
Oil prices have been increasing over the last few weeks, with the per-barrel price around $100. This could very well be due to the unrest in the Middle East, but if the oil fields of Libya are affected, expect a massive rise in the cost of oil, as the country exports 1.2 million barrels per day, according to the Energy Information Administration.
Currently, the national gas price average is the highest it has been since late 2008.
[Detroit Free Press]