Gasoline Prices to Rise as BP Finds Leak in Alaskan Pipeline

The Alaskan Pipeline has apparently seen better days and so has Americans gasoline prices. Now we find that due to; Damaging corrosion prompts Alaskan Oil Pipeline Closure; show headlines. Expect oil prices to rise, as this is some 400,000 barrels taken out of the market and that is a lot of oil indeed. What does this mean? Well it means $80.00 plus per barrel or more.

And realize this is before we have our first Hurricane strike of the 2006 Atlantic Hurricane Season. But that is not the only fears that consumers should consider as Tehran has threatened to use Oil as a Weapon. Fears of escalation of the war between Hezbollah and Israel expanding into Syria are also fueling the commodity traders to trade higher.

This Alaskan Pipeline closure is completely serious and that alone will be enough to show significant changes in the United States gasoline pump prices. Consumers should be well advised to expect $4.00 per gallon prices sometime in the Summer of 2006, maybe even more say some commodity traders. There are many factors to all of this and we must be prepared to get a little more serious in our goals to break our addiction to foreign Middle Eastern Oil.

Posted in Peak Oil News