Oil Rises as Violence in Libya Escalates

Crude oil prices broke through the $100-a-barrel barrier on Thursday, before settling just below that mark by the end of the day. The rise in oil prices is a direct result of the turmoil in the Middle East, but more recently over the chaotic situation in Libya.

The president is currently in discussion with our European allies formulating a coherent strategy as the situation in Libya continues to become more uncertain with each passing day. The dramatic rise in oil prices will greatly affect the fragile U.S. recovery, which is just beginning to bounce back from recession. The nation is already experiencing a rise in food, and other commodity prices.

This sudden turn of events will have a huge impact on the economy but also on the political landscape in the U.S., as the next year the president will be facing re-election. If oil prices continue to rise, the U.S. could be in for a double dip recession, which will send unemployment higher. Thus affecting the president's re-election chances.

The coming months will be crucial for the situation in Libya, but also for the U.S. economy as it heads into the spring and summer months.

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