Some experts expect that the unrest in the Middle East could lead prices into the crisis zone.
Opinions are mixed on the issue, because even as the price of oil continues to drop, the price at the pump continues to rise, a paradoxical paradigm caused by the chaos in Egypt and other countries in that region.
“As that spreads across the Middle East that generates more and more uncertainty,” said Ty J. Young, president of a financial advisory company in Cobb County. “If we were to have a Middle Eastern country like Saudi Arabia change leadership as a result of rioting, we could see gas prices even higher than four or five dollars if supply goes down dramatically and demand stays where it is.”
“If the unrest in Egypt begins a domino effect in nearby oil rich nations, Americans could end up paying double at the pump. And even though Egypt is not a major oil producer itself, it does control the Suez Canal, a major shipment route.”
He further added, “There would be a huge demand, as we have now, but not a suppl. If you have more demand than supply, the prices would go up, and it could easily go to $7 a gallon.”