4.20.2011

Oil: A Global Report, A Local Impact

March saw spot crude prices jump 10-15% as rising OPEC production was more than offset by political unrest and accompanying supply shortages in other exporting nations such as Libya, Yemen, Oman, Gabon and the Ivory Coast. See more details on the latest developments in the global oil market including charts in the latest International Energy Agency report here.

Though many of the problems impacting oil prices are occurring in North Africa, the resulting jump in crude prices is being reflected closer to home. In particular we have noted that one of today's headlines has trumpeted the emergence of $5 per gallon gasoline in Washington DC.

It might only be scant consolation to our readers, but it appears to this observer that the photo at the link above was taken at a particular station found at the intersection of Virginia Avenue and the Rock Creek Parkway. For those unfamiliar with the lay of the land, this places it on the commuter route of many of our elected representatives traveling to homes in Northwest DC and Maryland from Capitol Hill every evening. Though politicians are frequently accused of being out of touch, maybe this is one time they are feeling the pain of common voters...

If knowing that politicians are paying high prices for gas alone doesn't console the frequent drivers among readers, it should further be noted that the station in question, due to both its proximity to the high-priced Watergate complex and its location on the particular commuter route noted above, has the notorious luxury of charging above market rates. Therefore, here's hoping that the specter of $5 per gallon gas for most people is some ways off yet.

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