Middle East Crisis Could Boost Gas Prices

Posted on July 14, 2006

Oil has soared as a result of the new Middle East crisis. Prices peaked at $78 a barrel before settling over $77. If oil prices stay at these levels then consumers can expect unwanted new records to be set at the pump. An AAA Texas spokeswoman explains in a bizjournals.com article.
"For the second time in as many weeks, the price of crude oil climbed into record territory. This time, above $76 a barrel," said AAA Texas spokeswoman Rose Rougeau.

"Escalating tensions in the Middle East have renewed fears that supplies from the region may be disrupted. If crude stays at or near these levels for an extended period of time, retail gas prices will soon follow, because demand remains strong. And motorists will see new record prices at the pumps," she adds.

The national average for regular self-serve gasoline is $2.96 a gallon -- up two cents from last week.
Unfortunately, the gas prices are likely to continue to increase this summer if things are not resolved quickly between Israel and Hezbollah.