NEW YORK ( DailyFinance) -- Most U.S. motorists know what's probably coming this summer to a gas station near them: scorchingly high gas prices. Intensifying civil war in Libya has already cut that nation's oil exports to about 25% of capacity, pushing crude prices above $105 per barrel -- triggering a quick 40-cent increase in the average U.S. price for regular unleaded to $3.50 per gallon. However, that price may look low for the rest of 2011, for two reasons: 1) the risk premium that institutional investors are paying on oil futures because of concern that the unrest could spread to Saudi Arabia or Iran; 2) the U.S. summer driving season, during which gasoline demand rises, enabling both oil companies and local gas stations to raise prices without risking a decline in customer traffic.
| More from DailyFinance Is Concentrated Solar Technology Ready to Rise? |
As the U.S. Picks Up Steam, Emerging Markets Still Hold Promise
General Motors Recalls 10,000 Vehicles for Defroster Glitch