Wow. US oil prices rose like a rocket today – 6% to over $93 a barrel . In London, Brent is now trading at over $107 a barrel! Crisis pricing indeed, but in the post peak world, this is what to expect. Watch prices here
Read a mainstream report here
Basically, oil traders are worried about the “unrest” in Libya. Food prices have spiked for people there. And they are sick of it. The real worry is that it will “infect” the places where the world’s oil really comes from: Saudi Arabia and Russia.
The issue is: even if this is a short spike, it will have implications on food and other commodities, meaning more “unrest” abroad and higher gas prices here, even as our country struggles to “recover.” Not good news.
Seems like we’ve all seen this before – 2008. And as realistic folks have predicted, the volatility has come again. Say it with me: Peak oil anyone?
Now, watch for mainstream reports that all will be well, that it’s all under control. Don’t panic people.