Oil Prices at $126 …. An increase of 11% since the beginning of this month alone

NEW YORK May 10, 2008  9:50 GMT - American Light Crude Oil touched US$ 126 a barrel yesterday, setting a new record price for oil.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

This marks an increase of 25% since the start of this year, and 11% increase since the beginning of this month.

I think we will see the $200 price sooner than expected.

But what does a $200/barrel means to us the hard working consumers?

It means …….. To fill our cars with gas, we will see price of  $7-$8 per gallon at gas pumps.

It means ……. Increase in commercial transportation, which in return means increase in all type of goods transported (that means everything we eat, use and wear)

It means……. Sharp increase of the air travel tickets.

It means……. Increase in every manufactured product (cars, home appliances, clothes, food production, etc.) by at least 30-55% because all manufacturing plants needs oil to run.

It means…… Food prices will increase, because of production, processing and transportation increase.

It means….... Heating and cooking gas will increase, thus home utilities in return will sharply increase.

However we look at it…… such an increase in oil prices is disastrous to us. Sadly we are goin there, unless a solution is found, very soon.