We Americans have witnessed continuous increases in oil and gasoline prices over the past few decades. Each year is slightly higher than the previous one. However, we have seen some cases where oil and gasoline prices have risen rapidly enough to call upon the American public to stop or cut spending. The first time in recent history was after Hurricanes Katrina and Rita in 2005. Then, in July 2008, we saw a huge jump to the current national average record of $4.50 per gallon of gasoline. Oil at the time was above $115 a barrel for light crude, which is the oil Americans use in their gasoline. Currently, oil and gasoline prices in the United States continue to rise. In the last month, gasoline alone has increased by almost 17 cents per gallon, or just over 5% ( source ). Compare the last month's increase to the average annual increase of 14%, or about 39 cents per gallon ( source ). This leads to a peculiar question: why are the prices of oil and gasoline increasing at such a rapid rate? Three possible reasons could be: unrest in the Middle East, speculation and risky trading on futures, or a simple difference between supply and demand. The unrest in the Middle East would constitute a valid disruption to normal prices if the Middle East exported less oil than before the numerous revolutions. However, Saudi Arabia has said it will make up the difference in supply if supply drops significantly ( source ). Other members of the Organization of the Petroleum Exporting Countries (OPEC) have vowed to “do more” if the region continues to become destabilized. Libya, for example, represents only 2% of the world's oil resources (source). Libya's oil is special only because it contains 0% to 0.5...... half of the 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 crisis: the global curse of black gold. Cambridge: Cambridge UP, 2010. Print.Green, David. “Libya is heating up, oil prices continue to rise.” WNC News. Www.worldnewsco.com, March 2, 2011. Web. March 15, 2011. Hargreaves, Steve. “Gasoline Prices Rise on 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. “Libyan crisis drives up oil prices.” Columbia Missouri. The Associated Press, March 7, 2011. Web. March 15, 2011. Moenning, David D. "Oil Rising: Can Obama 'Lower' Prices?" Company interior. Www.topstockportfolios.com, March 7, 2011. Web. March 15. 2011.