This week, the bombing of an oil pipeline in Yemen
by saboteurs and a suicide bombing
targeting lawmakers in Afghanistan spooked world oil markets. Those overseas events combined with rising demand and falling supplies in the US to drive oil price futures contracts to a new record high of over $97 a barrel. That's a jump of almost forty percent since August, an increase which so far hasn't been completely reflected in US gasoline prices. This week prices in southeast Michigan are still hovering around $3.05-3.10 per gallon, but oil companies are not likely to eat the crude oil price increase for that much longer. It's only a matter of time before prices climb steeply.
[Source: Detroit News]