Oil prices continue to climb to record highs, settling over the $71 mark today in New York. Gas prices also continue to climb, hitting $2.22 a gallon on the market. That means prices will continue to climb at the pump, well ahead of the summer driving season.

The high prices are contributed to a couple of different factors. First is the political situation in both Iran and Nigeria. Tensions with Iran, the second largest OPEC nation, continue to escalate as they continue to move toward becoming a true nuclear power. Nigeria is faced with geo-political tensions as rebels continue to threaten the oil rich nation.

Next comes the rising demand from growing nations like China and India, who've been industrializing and growing their middle classes by leaps and bounds. As more people require fuel for transportation, heating and electricity, demand will continue to go up.

The last note are the refiners themselves. Stocks have been dwindling as they've been working on heavy repairs for the various refineries in the U. S. This shortens the gas supply. And according to the Wall Street Journal, the repairs should be pretty much done by the end of the month, this doesn't help us now.

While President Bush stated today price gougers will be dealt with, he doesn't touch on the fact that the entire industry is gouging the prices. All the tension are merely a smoke screen to allow the oil companies to continue to enjoy record profits. Politically, this doesn't bode well for those in power though. As I've already stated, the one way way to cause problems during an election year is for people's wallet's to be in the shitter and that's what will lose elections.

You'll see election losses this year and oil/gas prices will be the reason.

Technorati Tags: oil prices, elections, Bush, Iran, OPEC, Nigeria

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