the station, what people don t understand is, okay, no oil flow has been cut off except in libya where we don t get much of our oil. why is it now 17 cents higher per gallon than it was a week ago? what is driving them up fear? yeah, fear. i think there isn t a large cushion that the global demand suppliers are close to each other. if you take any amount of supply off line then you have higher prices. so i think it s the concern that we are going to lose those supplies. i think mark has this right. if you dial the clock back to summer of 2008 we saw oil at $140 a barrel. since that time we have added no substantial capacity around the globe. we are seeing economies recover. we ll see pressure on oil prices and now we have concerns that the oil supplies go away. you will see a big price change. italy gets a lot of its oil from libya and needing to get it somewhere else and making the price go up essentially is what
with me now here in washington the chief economist for moody s analytics and douglas holts aiken former director of the congressional budget office. when i talk to people about gas prices, even the folks that own the station, what people don t understand is, okay, no oil flow has been cut off except in libya where we don t get much of our oil. why is it now 17 cents higher per gallon than it was a week ago? what is driving them up fear? yeah, fear. i think there isn t a large cushion that the global demand suppliers are close to each other. if you take any amount of supply off line then you have higher prices. so i think it s the concern that we are going to lose those supplies. i think mark has this right. if you dial the clock back to summer of 2008 we saw oil at $140 a barrel. since that time we have added no
out and i have to run trucks and these guys, we literally can t add new routes. we can t afford to do it. peter: you re right, but like a lot of people that we know, we sit around and say, okay, there s crisis in the middle east, people are in the streets in various nations, how does that correlate at this point to an increase in gas prices? what has actually happened that the gas has been cut off in some way. clayton: that s a great point. peter: what s going on. clayton: i m struck by why in the world does it affect us because most of the world in the united states comes from canada. it baffles me. alisyn: i have a slight answer to that. not an answer at all speculation. they say that the oil flow has not been that disrupted during this, it s just the fear the anxiety and fear and that s what drives the cost. so it s not based in reality. peter: is it driving speculation, driving gouging, greed in terms of oil companies? what is it driving? i mean, i d like to see a real
today s your money segment. on the top of the list, oil flow has been cut by 95% in the 800 mile long transalaska pipeline after operators discovered a leak near prudhoe bay saturday night. christine romans tells us what that s likely to mean for gas prices. we ve seen increased oil prices and increased prices at the pump. there s a lot of oil that goes through this pipeline. there is. it s about 15% of american crude oil output through this. you ve got all these energy analysts trying to figure out when that will be up and running. one analyst saying it s a very minor leak but it takes a lot of inspection to get it back going again. you know, it s owned and operated by bp, by the way, so nobody wants to make a mistake hear and cause any kind of a problem. so maybe the next couple of days you ll have the oil offline from here. you know, ali, energy supplies are stressed around the world. you ve got some of these other countries coming up very
billion people to do the right thing because of humanitarian issues. i ve been there and met with the government officials. the truth is, this is economically sound for them. they don t want a war. they have oil wells there. and chinese workers there. and the south sudanese are going to attack those. that s the first place they re going to go and they re going to blow them up and they re going to lose their oil flow. and it s going to interrupt it. the egyptians will have the same problem with water, which they need. water rights. so at the end of the day, there are other players that we have to get involved, simply out of economic reasons. larry: george has told you what you can do. for more information about that, about the situation in sudan, go to the website, cnn.com/larry king. that s our website. or go to sudanactionnow.org. we ll be right back. may be possible. in pursuit of this goal, lexus developed the world s most advanced driving simulator,