Posted in: Gas Prices,
by Patrick DeHaan on Sep 9, 2013 11:08 AM
Gas prices across the country remain in somewhat of a limbo as we await tomorrow's announcement from the White House. The stakes are high: attack Syria and upset what stability there is in the region, or not attack, and avoid the wrath of the American people, and the people far beyond our borders.
There's the possibility of a big impact on gasoline prices as well- with all the threats from Syria itself, Iran, Russia, it would likely put tremendous upward pressure on oil prices, and thus gasoline prices, even as oil consumption drops in the world's largest oil consuming country.
There's already been talk about releasing oil from the Strategic Petroleum Reserve in the case that oil prices spike, but would that be enough to prevent oil prices from spiking? We've seen in the past that SPR releases have backfired, so what could happen this time? It's unknown that emergency oil stockpiles would be released, given that oil demand slips into winter, and as the U.S. has seen a radical increase in oil produced domestically.
It is unlikely that oil prices would breach records, and may not even come close to the record setting $147/bbl set in 2008, but a jump is certainly possible this week after the President outlines his plan.
All eyes will be on the President tomorrow evening, and we'll be sure to let you know Wednesday what kind of impact his speech made or will have on oil prices, so stay tuned.