Oil Prices Past $100; Highest Price Since 2008

Filed in Gather News Channel by on February 23, 2011 0 Comments

Oil prices have hit $100 per barrel, as unrest continues across the Middle East. The prices are the highest oil prices the US has seen since 2008.

Stocks continued their downward spiral on Wednesday, as violence and civil unrest in Libya caused oil prices to climb even higher. The main concerns were about oil disruption in Libya, a country which is a top oil producer. Higher oil prices usually have a detrimental effect on the economy as a whole, pushing up energy prices and causing people to cut back even more.

Traders work on the floor of the New York Stock Exchange, February 22, 2011. REUTERS/Brendan McDermid

“This is a different situation from Egypt[,] when markets bounced right back up the next day. We will have to watch for a couple more days, but this could be the beginning of a correction as low as 5 percent,” said Scott Redler, who is the chief strategic officer for T3live.com

With one of the worst winters on record in the US, higher oil prices are not a good thing. Especially considering that the economy is fragile, and many people have yet to find jobs. Will these high prices continue until the Middle East settles down? If that’s the case, you may see increasing oil prices for a long period of time.

Photo Source: Rueters

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