The recent unrest in the Middle East has sparked concerns about a potential increase in gas prices, but experts believe that there will be no significant impact on global oil supplies. The current low price of petroleum is due to oversupply rather than any specific event or conflict.
Factors Affecting Gas Prices
Carp explained that while international news can have some effect on oil prices, it is usually only a small change. He noted that unless the news is catastrophic, gas prices are unlikely to rise significantly.
Role of Oil Exporters
The expert also pointed out that Syria is not a major oil exporter, which means that its unrest is unlikely to directly affect global oil supplies.
Oversupply and OPEC’s Efforts
Carp attributed the recent drop in petroleum prices to oversupply. He stated that too many countries are producing oil, leading to a surplus that has driven down prices. In response, the Organization of Petroleum Exporting Countries (OPEC) is trying to reduce exports to drive up prices.
Local Gas Prices
In Hampton Roads, gas prices tend to be lower than the national average. According to Ryan Adcock with AAA, the average price of gas in the region is currently down by two cents, and it can be as much as five or six cents below the national average.
Winter Blend Gas
Adcock also noted that the winter blend gas is cheaper to produce than the summer blend, which has contributed to lower gas prices.
The recent unrest in the Middle East has sparked concerns among many that it could lead to an increase in gas prices. However, according to an expert from Old Dominion University, there is no need for concern.
Syria’s Limited Impact on Oil Exports
Syria is not a major oil exporter, which means that the current unrest in the country will have a limited impact on global oil supplies. As Aaron Carp, ODU senior lecturer and professor of political science and geography, noted, “Syria is not a major oil exporter, so what we’re really talking about is perceptions internationally.”
Iran’s Role in Oil Exports
The ongoing conflict between Iran and Israel is a more significant concern for the global oil market. Iran is a major exporter of oil, and any disruption to its exports could lead to an increase in gas prices.
Oversupply of Petroleum
Ryan Adcock with AAA provided some good news for consumers: “The winter blend gas is also cheaper to produce than the summer blend of gas because it does not have the … additive that causes it to not evaporate during the summer that is not in the winter blend of gas.”
Conclusion
While the recent unrest in the Middle East has raised concerns about gas prices, experts believe that there will be no significant impact on global oil supplies. The current low price of petroleum is due to oversupply rather than any specific event or conflict.
