President Obama says Syria will pay for using chemical weapons. Iran threatens that Israel will pay if the U.S. attacks Syria. But, in reality, it is you and I who will pay for all these chest thumping in the Middle East, as 1200 WOAI news reports gas prices are about to skyrocket.
The price of West Texas Intermediate crude for October delivery has shot up in the last few days, as traders predict things will get worse in the Middle East, and have tacked a 'danger premium' on to prices. Syria is not a major oil producer, but significant pipelines run through Syria which connect oil wells in Iraq, Iran, and Saudi Arabia to ports in Turkey.
Crude oil is now at its highest level in more than 18 months.
Greg Laskowsky, who is a senior market analyst with Gasbuddy.com, tells 1200 WOAI news that higher crude oil prices mean only one thing for us.
"It is important for consumers to realize that when crude oil goes up, it is almost inevitable that both wholesale and retail gasoline prices will go up along with it," he said.
Laskowsky said you'd better gas up now, because the average price of gasoline in San Antonio, which is currently $3.40, will start jumping.
'I think we may seen an increase of ten or twenty cents a gallon," he said.
In fact, the price increases have already begun. The price is up one cent just from yesterday.
But Laskowsky says there are also factors in play which will prevent prices from spiking into the $4 range.
He points out that demand is falling as the Labor Day weekend marks the traditional end of the summer travel season. More U.S. oil production, especially from fields like the Eagle Ford, will help keep enough crude oil on the market. Economic activity is slowing in China, meaning that gas guzzling nation is demanding less oil.
But he says price rises are inevitable, and we can expect to see them showing up in the coming days.
"It's important for consumers to realize that when crude oil goes up, it is almost inevitable that both wholesale and retail gasoline prices will go up along with it," he said.