The unrest in Libya may cause US gas prices to spike to $5 per gallon and beyond, some experts predict. USA Today cites Darin Newsom, a senior analyst with energy tracker DTN and he says look out.
Gas Price Jump - Libya and $5 Per Gallon Gas?"If this thing escalates and there's a good chance that there'd be a shift in supplies, $5 gas isn't out of the question."
According to the Associated Press, Libya is the world's 18th largest oil producer, pumping out around 1.8 million barrels a day, or a little under 2 percent of global daily output.
How bad will a big gas price hike at the pump affect the economy?
More details. One expert notes the possible damage to the US economy, which some say is barely in recovery.
"Above $4 a gallon, we'll see consumers hunker down," said Moody's Economy.com economist Ryan Sweet.
"It could take steam out of spending just as consumers were getting their sea legs."
(Image: WENN)
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