Since the start of 2012, many Americans were met with the highest gas prices seen ever. The worst thing is that analysts are now predicting the worst is not over, with prices tipped to go well over $5 during the year.
Making matters even worse is the current tensions in Iran, and the threat to close the Strait of Hormuz, which has driven crude prices sky high. Many industries, and refineries are feeling the pinch too, which has worked it way to the price at the pump and hit consumers in the wallet also.
Many people do not understand that the Straight of Hormuz is a critical shipping lane that let through 17 million barrels of oil each day. That makes up about one sixth of all world wide oil production.
The situation in Iran at the moment is much worse than the tensions we saw in Libya at the end of last year. Gas prices are increasing again, after many thought there would be a significant sell off.
Now these threats have turned geopolitical will further push prices higher and will hurt many industries and the economy in general. There is not room to move right now, due to tensions, and it is most likely prices will flatline or even increase some more over the coming months.
With all eyes on the middle east, that will be the make or break to the prices at the gas pump. No matter where you live in the US, the prices will not vary that much, and will more than likely stay over $5.
The only thing that is good news for consumers right now, is that Iran is normally a big talker, and they never go through with any of their threats normally. If things to settle down, that means that there is a strong likely hood for things to settle down at the pump also.
There is so much news coming out of the middle east right now and that is making both investors and gasoline suppliers nervous in the first quarter of 2012. The worst thing about higher prices at the start of the year normally mean it will continue for at least a month or so.
Tensions in many oil producing countries have many analysts agreeing that the price of gas is in for another roller coaster, volatile year. When prices are at the low end of the spectrum that would be a good time to buy or store gas if you have the finances to do so.
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Jon Safer
Economics Article FeedFind More ArticlesSearchSimilar ArticlesPositive People Power - Taking Control By Being Proactive NOT Reactive!Iran's Nuclear BlackmailDo You Really Want Change?Car Diesel Saving Tips - Using Water As FuelWhere Did All The Farmers Go?The Coming Credit Card Debt MeltdownThe Boeing 757FAQ on Modifying the Toyota SupraUS Should Apply Space Race Mentality to Clean EnergyGraveyard DetroitRecent ArticlesHow To Solve The Homeless SituationProgressivism Isn't Progress, VIIIHow Secure Is Your "Secure" Job?A True Comparison Of Increasing Debt Between Bush And Obama AdministrationsHow To Compete With ChinaWould Einstein Think Us Insane?What Will Happen If Greece Defaults?A Cluster of (Minor) ErrorsThe US Recovery Is Producing SurprisesA Sigh Of Relief For The Economic Status Of The USSubmitted On January 17, 2012. Viewed 5 times. Word count: 420.MLA Style Citation:Safer, Jon".".17 Jan. 2012EzineArticles.com.26 Jan. 2012
Safer, J. (2012, January 17). . Retrieved January 26, 2012, from http://ezinearticles.com/?Higher-Gas-Prices-Are-Expected-For-the-Rest-of-2012&id=6821725Chicago Style Citation:
Safer, Jon "." EzineArticles.com. http://ezinearticles.com/?Higher-Gas-Prices-Are-Expected-For-the-Rest-of-2012&id=6821725
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