Thanks to political unrest in the Middle East, gas could hit $5 a gallon by summer’s peak driving season, a new report finds. In recent weeks gas prices have climbed to two-year highs.
Industry analysts predict that if political unrest Libya spreads to other oil-rich countries – such as Iran – oil prices could spike to $5 a gallon by the peak driving season. So far the trouble in Libya hasn’t had a widespread affect on the country’s oil production, but that could change in the coming weeks.
“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.
Gas prices in the U.S. averaged $3.17 earlier this week, but that figure is expected to rise to $3.25 within a few days. Oil prices have steadily increased over the last few weeks as well, with the per-barrel price nearing the $100. Prices haven’t been that high since late 2008.
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1.’If Libyan unrest…’ view
