Late night trades on the New York Mercantile Exchange took oil prices over $70 a barrel with gas going to $2.12 a gallon on the market. This means gas prices at the pump are fast approaching $3 a gallon and will probably be there before April is over unless something changes. Unless oil and gas inventories in the U.S. increase dramatically on the Wed. update, then look for prices to continue to climb.

At this stage of the game, it's not out of the real of possibility to see $80 a barrel for oil and perhaps $4 or $5 a gallon at the pump. Honestly, unless Nigeria's political situation calms considerably as does Iran's, those prices will climb. Also consider the hurricane season kicks off in June. This is assuming all the refineries keep working right and no other countries have any real problems wityh oil production.

This is what's really going to decide this next election. As most primaries will be over within a month, incumbants have something genuine to worry about and that's oil prices. Both the president and VP made money in the energy business and they're treating it well at the cost of the American people. If the Democrats were smart, they would seize on this issue and begin hammering it home.

Lots of issues are abstract and uninteresting. But gas prices people understand and it's a prime opportunity to begin the assault on the Republicans. It's a good issue that will work, especially when combined with the Iraq war.

Technorati Tags: oil prices, Iraq, elections, Republicans, Democrats

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I watch oil prices very closely and in my opinion, 70 dollars is just the beginning.

The Iran problem is gonna stick with the world for years to come, so will terrorism in general. As long there's that unpredictable factor in areas in which oil is produced, oil prices won't back off.
 

I tend to agree with you. The only way to solve the oil problems are to find an alternative.