U.S. gasoline prices raised to a record $3.10 a gallon topes all time high $3.07 a gallon in September 2005 after Hurricane Katrina disrupted refinery operations and oil production along the Gulf Coast. The price increased for regular unleaded gasoline 5 cents over the last week and is up 16 cents from a year ago.
Stiff increase in gasoline prices are reducing consumer spending, which accounts for about two-thirds of U.S. economic growth. Consumers also fears that gasoline prices can cross the $4 level, but Energy Information Administration (EIA) insures that prices will hang on near $3 a gallon for most of the summer.
Oil industries are going through the tough period as rising militant activities including kidnapping, extorting and blowing pipeline on Nigeria’s oil delta, which threat laborer to stop drilling oil in the delta. Largest oil driller of oil in South American region Venezuela also walks out from IMF and WB, and nationalizes its all oil companies, in which American companies were major stockholders, set US on back foot. To get out from the critical condition EIA, urge OPEC to increase oil production this summer, heads of the EIA, Guy Caruso said
We do think there will be a need for more OPEC oil
The prices hit to all time high on the eve when the US first man ordered government to look for other energy sources to curtail U.S. gasoline consumption. President Bush said
Our dependence on oil creates a risk for our economy, because a supply disruption anywhere in the world could drive up American gas prices to even more painful levels
President Bush ordered several agencies to finish the work by 2008 that he wants to make lowered the gas emission by the end of his tenure. Nevertheless, market analyst do not agree with the president and quoted that, it is not as easy as president think, it will take time, even after ten year down the line from today, US will lessen its dependency on gasoline only 20 percent.
Image: greenpeace
Via: CNN
