Gas and oil prices continue to soar into record high territory Tuesday, with retail gas reaching a national average of $3.51 for the first time and crude nearing $120 a gallon while the dollar fell to a new low against the euro.

At the pump, the national average price of a gallon of regular gas rose 0.8 cent Tuesday to $3.511, according to a survey of stations by AAA and the Oil Price Information Service. Prices for diesel _ used to transport most food, industrial and commercial goods _ also rose overnight to a new record of $4.204 a gallon.

Gas prices are 66 cents higher than last year, when they peaked at a then-record of $3.23 in late May, and many analysts have no idea where how high gas is going to go.



Yesterday commandos from the Movement for the Emancipation of the Niger Delta (MEND) in continuation of Operation Cyclone attacked two major oil pipelines in Nigeria and appears to have shut them down. They belong to Shell and Chevron. They've also written a letter to George Bush, explaining that MEND will not be intimidated by the presence of US warships transiting the Gulf of Guinea. Nigeria is the world's eighth largest oil exporter and the fifth largest supplier of crude to the US. MEND's recent sabotage of pipelines and other oil facilities has been steadily driving up world oil prices.



OPEC and Saudi Arabia meanwhile have no intention of increasing production saying that it's not a supply problem, but more of a geoploitical problem? It does appear that any scare put into supply seems to drive the price higher including an attack yesterday on a tanker from Japan. Without an energy policy and dependence of sweet crude in unstable areas of the world, it appears that the United States may be at the mercy of world events. Domestic production continues to drop while American Energy giants ratchet up the price in response to the rise. It's no surprise when the issue of $4.00 a gallon was raised to George Bush he asked who said that? Consequently, we have had a problem and the chickens may be coming home to roost. I paid $3.69 a gallon yesterday to fill up and some one is full of it.

SEE- Nigeria: On the MEND below
https://strider333.blogster.com/mending_oil_prices_100