Violence in Egypt could spike oil prices, experts fear


Published: Monday, August 19, 2013 at 11:39 a.m.
Last Modified: Monday, August 19, 2013 at 11:39 a.m.

Retail gas prices have fallen 1 cent since Monday of last week and remain 15 to 20 cents lower than last year. Experts warned on Monday, however, that oil prices might rise because of tensions in Egypt.

Facts

Average price for a gallon of regular gasoline

U.S.
Monday: $3.538
Week earlier: $3.549
Month earlier: $3.672
Year earlier: $3.720

Florida
Monday: $3.504
Week earlier: $3.522
Month earlier: $3.624
Year earlier: $3.659

Source: AAA

The recent violence in Egypt creates more concern that supplies in the region will be disrupted, specifically those that pass through the Suez Canal. At this time, the Suez Canal is operational and transports about 2.5 million barrels of oil a day.

"As long as the Suez Canal remains open and oil is transported daily, motorists should not see a huge spike in gas prices as a direct result of violence in Egypt. That also means not to expect large drops in gas prices, either,” said Jessica Brady, AAA spokeswoman with The Auto Club Group.

The cost for a barrel of oil closed last Friday at $107.46 on the NYMEX — $1.49 more than the week prior.

The national average price of regular unleaded gasoline was $3.54 on Monday, 1 cent less than a week earlier. Florida's average of $3.50 fell about 2 cents from last week.

In Gainesville, the average price of a gallon of regular gas on Monday was $3.60, down 2 cents from last week, according to the crowd-sourced website www.gasbuddy.com. Prices ranged from $3.47 to $3.76.

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