Gas prices June 2, 2013 SoCal (Photo credit: Lynn Kelley Author)
This has happened pretty quickly today so I wanted to jump in on the issue that most journalists are not reporting on. So for the first time in well over a year Oil prices have risen over the $100 per barrel mark and this is pretty significant. As these protests are increasing in the middle east, our oil prices are moving right with the increase. One would wonder if we should step in and try a diplomatic solution or help reassure some of the Egyptian citizens that democracy will find a way to settle their unrest. Otherwise when this problem gets worse, we are going to pay for it with our wallets.
Real and Nominal (inflation adjusted) oil prices (Photo credit: Wikipedia)
While in college i had at least a semester to study resource conflicts such as this or the diamond trade and how unrest and protests greatly affect the end user price point. OPEC tends to hurt the end user in a few ways. First of all the gas stations and oil companies can raise the price in as little as 3 days. However, when it comes to lowering prices, it can take 2 weeks or longer.
Recently, we have had pretty steady and not so bad prices at the pump, it is a shame that it is most likely over. Let me know how you feel.
Related articles
- Egypt unrest pushes oil prices near $100/barrel (wtvr.com)
- Egypt unrest pushes oil prices near $100 (money.cnn.com)
- Oil prices jump amid Egypt unrest (mining.com)
- Oil Prices expected to rise as Oil barrel pushes $100+ (watchthebull.wordpress.com)
- Egypt unrest pushes oil prices above $100 (wdsu.com)
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