Libya– Col. Moammar Gadhafi’s threats to destroy his country’s oil fields has caused oil prices to skyrocket to prices comparable to 2008, during the war in Iraq. The vice president of energy at MF Global warns that if gas prices continue to grow, by May, “it will cripple the economy”.
Experts say that U.S. consumers are expected to see price changes in the next 10 days, since Libya is a significant exporter of light, sweet crude.
Daniel O’Connell, vice president of energy at MF Global said if crude oil does reach the brief high of $147 a barrel as it did in July 2008, then the price of gas could also average $4.11 as it did then. If that happens, he said consumers and retailers couldn’t absorb the higher gas prices as they did three years ago.
What happens if gas prices go even higher?
“If gas goes to $5, it will cripple any recovery,” O’Connell said. “People will be taking public transportation, road trips will be put on hold and flying will be a dream,” warned O’Connell.