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The rapid increase in price of oil caused a sudden rise in gasoline price. Experts say that they could reach $4 in US.  It is seen that cost of oil has increased to $100.88 per barrel. 

The increased cost could raise the economic troubles in US which in turn impacts the global economy.  Kenneth Rogoff, an economist of Harvard University said that the effects of prices can differentiate the situation of having and not having a recession. 

With the release of figures of prices at produces level the depth of the economic problems of US is very clear.  The prices at production level have increased 1% within a month.  From the reports seen, gasoline was sold at a rate of $2.35 per gallon last year.  The automobile club gave its reports that presently gasoline has been sold at a price of $3.14 per gallon through out the nation. 

Energy specialists are expecting that the cost may hit the last year’s record of $3.23 per gallon, as the demand for it increases during summer and spring.  On the other hand the oil price has recorded to $3.6 per gallon compared with $ 2.62 per gallon last year. The main reason viewed for the rise in energy prices is due to the demand across the world. 

The oil prices have quadrupled within 6 years.  Comparing the highest record of oil price in 1980 i.e., $39.50 with today’s record $103.76 per barrel, we can estimate the demand and utilization 

Phyllis Berry an ordinary American, who works in factory, says that she used to fill her tank regularly. But now she fills only when the tank gets almost empty expecting for the cheapest place to buy gas. 

The energy share was about 8% in 1980’s and 4% in 1990’s. The economists said that this has been increasing recently and the latest figure was 6.1% which is the highest level since 1985. 

Tom Kloza the publisher and chief oil analyst at oil price information service said that he expected gasoline to reach $3.5 to $3.75 per gallon nation wide. 

It is expected that due to more demand of oil from other countries, the oil consumption may increase up to 1 million barrels a day for next decade. 

John Mess, the4 chairman of Hess corp., in a conference, said that an oil crisis is going to occur in next decade.  He said that this is a matter of both demand and supply.