Unrest in Libya pushes Valley gas prices higher
Thu, 24 Feb 2011 01:44:19 GMT —
Rio Grande Valley residents have already noticed a big difference when stopping by the gas station to fill up their cars.
That TMs because prices are rising, which experts say are due to the chaos in Libya.
At the Valero off on Parades and Alton Gloor, gas prices jumped from $3.03 on Tuesday to $3.11 by Wednesday morning.
Professor Mostafa Malki at the University of Texas at Brownsville said, its all about supply and demand.
Oil traders and anybody that TMs interested in oil are increasing their demand, they want to buy as much as they can just in case something bad happens and we cant get to it in time" said Mostafa Malki.
The concern is, there will not be enough oil, therefore companies are stocking up, forcing them to charge consumers more at the pump.
Drivers can expect to see prices go up another 15 or 20 cents at a time.
But once things calm down in the middle east, we can expect a decrease of a penny or two at a time.
Though, if that unrest continues in oil producing countries, such as Libya, Malki says we could see gas prices as high as five dollars.
However, he says if the current regime is taken over by a democratic regime, there won TMt be a high demand for oil, which is a good thing for gas prices.