$5.00 a Gallon Gas Is Here

With the situation in Libya escalating, and no clear picture if Libyan’s contributions to the oil supply and flow will continue the rebellion is contributing to the hikes we are experiencing. Yet, the Obama administration is standing firm on their refusal to grant any new drilling permits, especially in the Gulf, or re-open areas they had suspended or shutdown in the wake of last springs BP oil spill in the Gulf of Mexico. But then, Obama wants the cost of a gallon of gas to rise, I guess at a rate where we are the slowing heated frog being brought to full boil before we’ve been cooked alive.

Florida is seeing some of the first $5 a gallon at the pump

Oil prices around the world continued to soar Friday, buffeted by uncertainty in the Middle East.

Crude oil futures hovered above $103 a barrel in New York Friday morning. In London trading, oil headed for its sixth weekly gain, according to Bloomberg News.

An oil facility in Libya was reportedly damaged and on fire, the Al Jazeera news channel reported. Meanwhile, demonstrators continued to protest in Saudi Arabia, demanding the release of Shiite prisoners, according to CNN.

“I think there’s a storm brewing in Saudi Arabia,” said Tom di Galoma, head of fixed income rates trading with Guggenheim Securities. “All these geopolitical events in Middle East are causing oil to spike.”

In the United States, how much pain at the pump drivers feel may depend on location. In Orlando, Fla., two gas stations that are the closest to the airport, and across the street from each other, are selling regular at $5.29 and $5.19 a gallon.

After the biggest one-week rise in oil prices in two years, weekly gas prices increased 6 percent this week, according to the Department of Energy. The national average is $3.38 per gallon, an increase of 19 cents over the previous week and 68 cents from the previous year. The average price in California, one of the most expensive states, is $3.72 per gallon. The least expensive gas is in the Rocky Mountain region: $3.18 a gallon.

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In LA, California:

Instead of taking the leadership and moving out of his anti-drilling box Obama is considering tapping into our strategic oil reserve. Is it 1973 all over again?

(Cross-posted@ CW)

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