The Gulf Oil Spill of 2010 will not just be known as one of the worst oil spills in history, but it will be known as the oil spill which spiked oil prices in an hard-hit U.S. economy. As if we need another thing to deplete our already lightened wallets. It's bad enough many of us have to endure reduced work-hours, no raises for a year or two, and higher living expenses.
Were you getting used to paying less than $3 a gallon for oil for the past year and a half? Well get used to prices above $3 a gallon or much more this summer.
Big Oil companies have just the excuse they need to pillage us at the pumps. Will this mean that they charge upwards of $4 a gallon for oil? Probably not, but you can expect oil prices to surge well above $3 a gallon like they did after Hurricane Katrina.
Natural disasters that affect oil refineries are pornography for Oil Executives. When they can use a natural disaster or any disaster as an excuse to justify inflated prices they jump on the opportunity faster than you can say "oil."
Some would disagree with this school of thought. Forexyard.com-an online brokerage site, feels that the Gulf Oil Spill will have a limited impact on crude prices.
Oil prices soared today after an upbeat report in jobless claims and will only continue to do so now that the summer season is upon us. Added to that, the Gulf Oil Spill is feared to be five times worse than originally feared. According to The Coast Guard, a damaged BP oil well in the Gulf of Mexico is leaking about 5,000 barrels a day, five times more than previously estimated . At the current rate the spill will exceed the Exxon Valdez disaster by the third week of June. In other words, this is a bona fide cluster (you know what).
There are a significant amount of refineries in the Gulf of Mexico and any "hiccup" in the production causes prices to go up. At this point it's hard to say just how much prices will go up, but you would be naive to not expect them to be affected.
BP is spending $6 million a day to clean up this mess. Now, Shell is offering a helping hand.
We'll be offering them a helping hand soon at the pumps. Get in line!
By, D. Bakay