Batten the Hatches: Gas Prices Ready to Skyrocket

Turmoil in the Middle East isn’t anything new, unfortunately, but a major Alaskan pipeline being closed for repairs is a headline that’s impacting gas prices across the country. BP will shut down the pipeline to the U.S.’s largest oil field for weeks or months due to corrosion. The closure will halt 2.6% of the U.S. supply of oil, and there’s talk of tapping into the country’s strategic oil reserve.

Crude oil closed at $76.98 today, still short of the $77.03 high it reached after Hurricane Katrina. Gas is also near Katrina highs. USA Today is reporting the national average for a gallon of gas is $3.036, but that’s probably from earlier in the day.

We’d expect a lot of instability and gas price hikes through the week. But because the announcement of the pipeline was made earlier this morning, we’re somewhat reassured that oil prices did not go higher today. We’ll keep an eye out for you, but don’t panic, yet.

[Oil Field Closure Ignites Oil Prices, USA Today]