Libya Unrest Could Push Gas to $5

BP, Statoil have pulled out of country
By Kevin Spak,  Newser Staff
Posted Feb 22, 2011 9:42 AM CST
Libya Unrest Could Push Gas to $5
In this Feb. 16, 2011 photo, Brian Sprague returns the nozzle to the pump after filling his car's tank with gas in Philadelphia.   (AP Photo/Matt Rourke)

Trips to the gas station could get a whole lot more painful soon, now that the unrest sweeping the Middle East has hit an oil-producing nation. Crude prices shot up 7% yesterday, and were still rising this morning, after BP and Norway’s Statoil evacuated workers from Libya, USA Today reports. “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,” one senior energy analyst says.

Gas prices are already up 20% from last year’s levels, and within the next few days are expected to rise another 2.5% to $3.25. Analysts think old-fashioned consumption will drive it to between $3.75 and $4 by midsummer, even without additional political upheaval. “We have all the wrong things working together at the right time,” says another analyst. If unrest hits other oil-producing nations, “you’re easily talking $5 gas.” (Read more oil prices stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.