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Egyptian Turmoil Unlikely to Impact Gas Prices

In something of a counter intuitive move, it appears as though recent developments in Egypt are unlikely to directly impact prices at the pump in the United States. According to CBS News' Washington affiliate:
Jeff Colgan is an assistant professor at the School of International Service at American University. He watches the oil markets globally and that means keeping close tabs on the Middle East since so much oil is either produced or flows through that region. He says Egypt does not produce much oil so the turmoil there will likely have little impact on gas prices. Colgan tells us, "What's happening in Egypt is bad for a lot of reasons but the price of gas is probably not going to be one of them." But there is the Suez Canal which is a vital and heavily used passageway to transport oil and other goods around the world. If something forced the closure or delayed ships traveling the canal - it raises the possibility of gas prices increasing. Still, Colgan says the canal is too important to the economy of Egypt and beyond to let anything that drastic happen. "Typically the government wants to keep the canal open but one could imagine rebels who are trying to force the hands of the government could try but that is one scenario but militarily not likely," he said.

Posted on 08/21/2013 at 15:11.

Uncertainty in Data Clouds Oil Market

Short term oil pricing is uncertain leading into mid-August. The Washington Post reports that market trading volume has decreased in anticipation of new reports from a number of sources. “The U.S. Energy Department, the International Energy Agency and the Organization of the Petroleum Exporting Countries all this week release their latest assessment of the energy markets, which includes a forecast for worldwide demand for oil. Analysts are anticipating some downward revisions, given a slowdown in China’s economy. ‘The slowed Chinese growth will be demanding of additional downward adjustments in global demand estimates by the various agencies,’ wrote Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates, in a note to clients. The market did have a swing of about $2 during Monday’s trading. A week ago, oil jumped nearly $5 on Wednesday and Thursday as the global economic picture seemed to brighten, even as central bankers in the U.S. and Europe indicated they’d maintain programs that helped to keep interest rates low. Then Friday, disappointing figures on hiring in the U.S. pushed oil down by 95 cents, though it still ended the week with a gain of more than $2 a barrel.” We...

Posted on 08/07/2013 at 15:57.

CNN Projects Further Rise in Prices

Unfortunately for consumers and fleet managers, the variety of forces combining to drive up prices at the pump show no sign of slowing. A number of media outlets project that the price hike will continue through the end of the summer driving system - at least. An article in CNN explains...

Posted on 07/18/2013 at 18:49.

US Consumers Continue to Struggle With Mounting Prices

Despite significant progress in improving domestic supply, American consumers are still suffering with gas prices at the pump. In large part, this reflects ongoing market uncertainty surrounding geopolitical developments - particularly in the Middle East. The Boston Globe asserts:
Even though oil imports are approaching 20-year lows, and the United States is enjoying a boom in new fuel sources, gasoline prices are soaring again because of political troubles halfway around the world. The civil unrest and military coup in Egypt ” a relatively small exporter of crude oil ” and the ongoing in-fighting in Syria have energy markets worried that the unrest could spread to other oil-producing countries in the region, disrupting supplies... ...And though the flow of imported oil has been steadily falling, the United States remains a huge consumer of foreign fuel and will continue to be subject to global events, said Jason Schenker, president of Prestige Economics LLC in Austin, Texas. “It’s still a global market,” said Schenker, whose financial consulting firm monitors the global oil industry. “We’re subject to global demand because we’re still importing millions of gallons per day from overseas.”
An article by ABC News...

Posted on 07/17/2013 at 17:09.

CNBC Covers Nationwide Price Spike

CNBC had a segment last night noting that gas prices this year are a notable 20 cents higher per gallon than they were last summer.  The full video is available below, followed by a notable excerpt. The following exchange between the host, Patrick Deehan, and...

Posted on 07/16/2013 at 18:21.

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