Is An Oil Super Spike On The Horizon?
This morning the United States Gasoline Fund(NYSE:UGA) is trading higher by 0.93 cents to $45.87 a share. This is a new 52 week high for the UGA which continues to trade higher with oil. When gasoline prices increase at the pump it is a direct tax on the U.S. consumer.
The United States Oil Fund(NYSE:USO) is trading higher this morning by 0.73 cents to $39.22 a share. The move higher in crude comes as the oil producing nations such as Libya are on the verge of a revolution. Saudi Arabia has told the United States that it can produce the lost oil from Libya's disruption. Many traders and investors are now wondering when the people may revolt against the Saudi Arabian ruler-ship. Should Saudi Arabia come under civil unrest oil could see a super spike. Everyone should still remember the super spike in oil in July 2008 and its effect on the economy.