With no end in site for fighting in Libya and the threat of protests and revolution spreading across North Africa and the Middle East, oil prices may continue to climb. This according to Jeff Rosensweig, Associate Professor of Finance and Director of the Global Perspectives Program at Goizueta.
“Its speculators in the oil market keeping the oil price high,” Rosensweig told Bill Liss of WXIA-TV in Atlanta. “It’s not contrived in terms of OPEC. They haven’t tried to drive the price up over $100 by limiting the supply of oil. It’s been driven up because of conflagration all across North Africa. The fear that this conflagration could spread and close down ports. It’s not contrived that ports close; It’s freedom fighters.”
Average gas prices in Atlanta rose to $3.48 per gallon Wednesday morning.
Rosensweig added the current price increase has nothing to do with traditional “supply and demand” but tied directly to world events.
“I don’t think you have to sell your car,” he told WXIA when asked if Georgia could see prices like California, which are already near $5 a gallon. “I don’t think anything is contrived. I don’t think the price of gas is going to go through the roof.”
But more turbulence could lead to more uncertainty.
POLL: How do you think gas prices will react this summer if uncertainty continues in the Middle East and North Africa?