Friday, April 8, 2011
Despite the Obama administration’s failed attempt to blame record gas prices on the growth of the economies of India and China, the real reason for record high gas prices is geopolitical.
Oil hit a 32-month high above $124 Friday after attacks on Libyan oil fields raised the prospect of long-term supply cuts, with commodities in general rising on optimism global economic recovery will fuel demand.
Ongoing unrest in the Middle East and concerns over supply disruption push to just below $125. U.S. crude climbed $1.05 to $111.35, down slightly from an intra-day peak of $111.90, its highest since September 2008.
President Obama’s advice to the American people is stop complaining and buy a car that gets better mileage:
“If you’re complaining about the price of gas and you’re only getting 8 miles a gallon, you know, you might want to think about a trade-in.”