We, the American people, have witnessed a continued rise in oil and gasoline prices over the past several decades. Each year is slightly higher than the previous one. However, we have seen a few cases where oil and gasoline prices have risen quickly enough to cause the American public to stop spending or cut back. The first time in recent history was after Hurricanes Katrina and Rita in 2005. Then, in July 2008, we saw a massive jump to the current record national average of $4.50 per gallon. 'essence. At that time, the price of oil exceeded $115 per barrel of light sweet crude, the oil Americans use in their gasoline. Currently, oil and gasoline prices in the United States continue to rise. Over the past month, gasoline alone has increased by almost 17 cents per gallon, an increase of just over 5% (source). Compare last month's increase to the average annual increase of 14%, or about 39 cents per gallon (source). This begs the question, why are the prices of oil and gasoline increasing at such a rapid rate? Three possible reasons could be causing this: unrest in the Middle East, speculation and risky futures trading, or a simple mismatch between supply and demand. The unrest in the Middle East would constitute a valid disruption to price normality if the Middle East exported less oil than before the many revolutions. However, Saudi Arabia has said it will make up the difference in supply if supply falls significantly (source). Other members of the Organization of the Petroleum Exporting Countries (OPEC) have pledged to “do more” if the region continues to destabilize. Libya, for example, represents only 2% of world oil resources (source). Libyan oil is special only because it contains 0% to 0.5...... middle of paper...... news, politics, world news, Good Morning America, exclusive interviews - ABC News. December 30, 2010. Web. March 15, 2011. El-Gamal, Mahmoud A. and Amy Jaffe. Oil, dollars, debt and crises: the global curse of black gold. Cambridge: Cambridge UP, 2010. Print. Green, David. “Libya is getting hot, oil prices continue to rise.” WNC News. Www.worldnewsco.com, March 2, 2011. Web. March 15, 2011. Hargreaves, Steve. "Gasoline Prices Soaring Due to Record Oil Demand, Industry Says - January 21, 2011." Business, Finance, and Personal Finance News - CNNMoney.com. Www.cnn.com, January 21, 2011. Web. March 15, 2011. Kahn, Chris. “Libya crisis sends oil prices soaring.” Missourian from Columbia. The Associated Press, March 7, 2011. Web. March 15, 2011. Moenning, David D. “Sharp Oil Rise: Can Obama “Bring Down” Prices? Business internal. Www.topstockportfolios.com, March 7, 2011. Web. March 15. 2011.