Gas Prices Rise Amidst Egyptian Turmoil, But Now Holding Steady

The upheaval in Egypt is raising prices at the pump, with average prices rising to $3.10 a gallon, according to data from GasBuddy. Though Egypt is not a major supplier of oil, the Egyptian-controlled Suez canal and the nearby Sumed pipeline are key pass-through points for the world’s oil supply, and there are concerns that the civil unrest could spread to other oil-producing countries. As of Tuesday upwards pressure on oil prices eased off as so far back the protests haven’t disrupted transportation.

OIL FUTURES: Crude Prices Lose Momentum As Suez Worries Ease [WSJ]

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  1. Blueskylaw says:

    As of this moment, crude oil is $91.70 a barrel which is down 49 cents from yesterday. Of course oil was in the $84 range a few days ago. If this crisis continues I think OPEC might start pumping more oil or the U.S. might tap the petroleum strategic reserves.

    • Cheap Sniveler: Sponsored by JustAnswer.comâ„¢ says:

      Opening the petroleum strategic reserves would hardly make a dent in the supply, but it would have a “psychological” benefit in calming panic driven price manipulations.

      • Blueskylaw says:

        There is also the benefit of selling the oil in the reserves at a current “high” price and replenishing the reserves when oil prices fall again, hopefully creating a “profit

  2. Straspey says:

    I make my own gas at home.

    Oh – wait…

  3. AllanG54 says:

    The U.S. is not going to tap reserves. If we didn’t do it when gas was $4 plus a gallon we won’t do it now. This is market speculation driving up prices, not shortages. We have more crude stockpiled now than we had in the last three months. We’ll just have to wait this out a few more weeks and things should be back in the $85/barrel range.

    • Cheap Sniveler: Sponsored by JustAnswer.comâ„¢ says:

      Different President, different strategies. Past administrations have tapped the reserves, there is precedent.

      Cheney/Bush = oil men, price increases were good for them and their cronies.

    • Blueskylaw says:

      As Cheap Sniveler said, the U.S. could open up the strategic petroleum reserves for psychological benefit. Since the Egypt crisis is probably temporary, there is also the added benefit of selling the oil in the reserves at a current “high” price and replenishing the reserves when oil prices fall again, hopefully creating a “profit”.

  4. dolemite says:

    I love how prices rise…for things that may or may not happen.

    Seriously…it’s supposed to work on supply and demand, and instead it works on pure speculation.

    • Invader Zim says:

      And when people are preparing for the storm by filling up.

    • Bsamm09 says:

      A lot of the “speculation” is speculation from businesses who need to lock in prices so they can budget. Fuel is a huge input in a lot of industries and the people who spend $10s of millions on it yearly can’t let a crisis in the Mid-East drastically change their prices so they lock in their contracts now.

    • SlimDan22 says:

      Just like the snowstorm we had this week in the midwest, i dont know how bad other people got it but i live in south eastern michigan and they where saying we where going to get 10 to 25 inches of snow, its going to be the worst storm in the history of michigan, blah blah, i went to Meijer the day before it snowed, and all the milk was gone, bread, eggs, etc. We only got like 6-9 inches of snow lol

  5. kcvaliant says:

    Don’t worry. They will speculate the barrel prices through theroof just in case.

    Sorry about double post if it happens.

  6. kcvaliant says:

    Don’t worry. They will speculate the barrel prices through theroof just in case.

    Sorry about double post if it happens.

  7. ALP5050 says:

    This time next year 3$ gas will cheap.. Say hi to 8$ a gallon.

    • dolemite says:

      I’d hope not…$8 per gas would mean food prices would pretty much double, and …well the US would probably have riots and anarachy with like 30% unemployment.

      • ALP5050 says:

        Major food commodity prices have gone up 50% in the last 9 months alone. Food inflation will be here shortly.

    • nbs2 says:

      Do you thin gold would be a safe investment?

      • ALP5050 says:

        Food, water, ammo. Those are my investments.

        • ARP says:

          Actually ammo is a pretty bad investment right now. The “Hussein gonna take ur gunz” crowd and two wars drove ammo prices sky high. It’s come down a bit since then, but still very inflated. If you have enough ammo to kill a few thousand intruders, then you should wait to buy more for your Becksian movie fantasy.

    • ARP says:

      If economy wasn’t struggling so badly job-wise, I’d actually welcome high gas prices. It might finally create the incentive to get more efficient cars or downsize, switch to alternate fuels, update our energy grid, use more renewables/nuclear, etc.

      • eccsame says:

        Yes, because everyone in the US *can* afford a new, fuel-efficient, $20,000 Prius or $32,000 Volt – they just need the incentive to get one. Or, at least, that’s what I would tell the single mother of three driving the 15 year-old minivan that keeps breaking down.

        • nbs2 says:

          He did qualify his comment with a caveat about the economy.

          Also, while spending that kind of money would be well out of that mother’s reach, I think in a bumper economy, she would be more likely to be able to afford a higher mileage (70-100k) minivan from a somewhat recent model year than in our current environment.

          Personally, I agree with you – I don’t think the people that would be most adversely affected by high fuel pries would be in a position to make lifestyle alterations to mitigate the problem. But, I can see my way to understanding why others would disagree on that point. I think the solution would depend on the government doing more to give folks mass transit options. Instead, as fuel prices rise, I’m seeing my state and local governments cut back on mass transit services.

  8. Cheap Sniveler: Sponsored by JustAnswer.comâ„¢ says:

    Here we go again: Economy cars will be in high demand, and gas guzzlers will be a dime a dozen.

    (Buying advice: buy a gas hog when prices drop.)

  9. Mold says:

    st reagan and bush sold the reserves.
    Egypt is an excuse…and since most US citizens don’t know…..

  10. ParingKnife ("That's a kniwfe.") says:

    This is stupid considering the military still has control of the Suez and in fact has more troops there than ever before.

    I fucking hate speculators. Get a real job! And get off my lawn!

  11. Spook Man says:

    Ok, so they’re using the excuse that because of the termoil in Egypt, they MAY have to ship the oil around Africa, etc. Longer trip, thus costing them more money.. So the speculators and traders RAISE the price because they’re SPECULATING it will happen.. It hasn’t happened, its just speculation raising prices..

    Stupid excuse.. I think there’s more of a threat in the Gulf of Aden and Somalia pirates hijacking the ship than attacks in the suez canal.. They don’t have issues shipping through the Gulf of Aden..

    Nice too that yesterday Exxon reported a $9+ BILLION 4TH QUARTER PROFIT. PROFIT, not revenue, PROFIT. Good to see that they’re making money hand-over-fist while I look at trying to budget gas and heating oil in my budget.

    I certainly haven’t gotten a raise for 3 years now, so I’m not getting any more money to help me out.. Plus other utilities are going up too; sewer, water, electricity..

  12. jessjj347 says:

    Wow, I was wondering why Egypt has been in U.S. mainstream news..it’s the oil..or perhaps an excuse to start raising oil prices (as they will this year).

    • ALP5050 says:

      If thats the only reason why you think Egypt is in the news then you need to learn more.

      • ARP says:

        Original comment is correct. America only cares as much as we do because of the oil supply. If there was no oil, our coverage would be probably 1/3-1/2 less. We’d still maintain some coverage due to Middle-East, Israel, etc. issues, but not nearly as much as we have now.

        See also: Haiti (one month later), Sudan, Robert Mugabe, etc for examples of this principle in action.

        • dolemite says:

          Don’t forget the massive oil spill. It was in the news for a few months, but who knows how the cleanup is going. Since the oil stopped leaking, the media stopped caring.

      • pecan 3.14159265 says:

        Seriously…I mean, it’s not as if millions are taking to the streets in protest or anything. Or maybe he thought that was in protest of high oil prices.

        • jessjj347 says:

          Nope, you didn’t understand the intent of my comment. I understand the situation there. Also, not a “he”.

      • jessjj347 says:

        Sorry, I should clarify – what I mean is that there are many other countries in the world where tons of people die everyday but U.S. mainstream news doesn’t cover it. I was surprised to see news about Egypt in “sources” as mainstream as yahoo.com…

  13. Thassodar says:

    It seems like anytime someone sneezes gas prices go up.

  14. Coalpepper says:

    Prices are chaotic here in Phoenix, i work as a price surveyor for a marketing company, and today instead of the prices all being within a penny or two is all over the board, some stations jumped a dime over night. This is not going to be easy on me since i delivery magazines and burn through a lot of gas.

  15. pot_roast says:

    The Suez Canal was never even an issue, and even the Egyptian government said that.

    What happened was skeezy speculators taking advantage of the situation to eek out another $10/bbl from us.

  16. SlimDan22 says:

    I hate the speculative pricing of crude oil and gas, i forgot where i read it but they where saying gas may hit $5 a gallon this summer, if thats the case im buying a bike and riding it to work and college lol

    i would love to get into biodiesel but i dont live in a state where it is warm year round