Fuel Trends

With reports indicating that a settlement of the Libyan conflict may be on the horizon, crude oil Prices dropped .32 cents a barrel, but still held above the $100 mark. Despite the fact that most countries oil supplies remains high, fears over control of Libya's supply - the largest such supply in Africa - and its reduction in output during the conflict generated spikes in crude pricing.

In recent years, we have enjoyed lower crude pricing, but recent conflict in the Middle East has propelled pricing above the $100 barrel price. An overall weak U.S. and global economy is especially hard hit during this spike and could slow recovery.

Some experts contend that Middle East unrest does not automatically equal oil supply shortages. However, the market is currently riding its current price surge on exactly that fear and only time will tell if the market balances out accordingly. Meanwhile, several Democratic Senators are urging Obama to consider tapping the U.S. Petroleum Reserve in response to the high crude prices, a move the U.S. Energy Secretary, Steven Chu, has already ruled out.

One thing remains clear, the conflict in Libya, whatever it's outcome, will have a significant impact on fuel prices and economies around the world.