Upheaval in Mideast pushes gas prices up

greenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread

Upheaval in Mideast pushes gas prices up

Friday, October 13, 2000

FROM NEWS STAFF AND WIRE REPORTS

--------------------------------------------------------------------------------

Oil prices soared Thursday after an attack on a U.S. destroyer in Yemen raised fears that conflicts in the Middle East could widen and affect the production and delivery of fuel.

The news triggered frantic trading in petroleum markets, with crude oil futures nearing a 10-year-high at one point and heating oil futures closing at an all-time high.

"What we saw here is fear, pure and simple," said Phil Flynn, vice president and senior energy analyst at Alaron Trading Corp. in Chicago.

As oil prices soared, the price of gasoline at service stations around Washtenaw County increased by 5 cents or higher per gallon, according to a random check this morning.

The Southeast Sunoco station at North Territorial Road and US-23 in Northfield Township increased regular unleaded gasoline by 6 cents per gallon Thursday to $1.59, said manager Natalya Skachko.

Broadway Marathon at 1026 Broadway St., Ann Arbor, was told by its supplier to increase pump prices by 8 cents, said an employee who declined to give his name.

Fran's Gas at 350 Ecorse Road, Ypsilanti, increased regular by 5 cents to $1.49, said manager Mohamad Alghim.

Whenever the Organization of Petroleum Exporting Countries announces an increase or cutback of oil production, it takes about 30 to 40 days before the supply actually reaches the United States. "But the reaction here could be almost immediate, said Jim Rink, spokesman for AAA Michigan."

-- Carl Jenkins (Somewherepress@aol.com), October 13, 2000


Moderation questions? read the FAQ