Gas prices have hit a two-year high after political turmoil has hit the Middle East.
Michael Hicks, director of the Center for Business and Economic Research, said the prices have changed in part because the economic recovery worldwide has boosted demand, however, he highlighted the recent price hike has been more political.
"In the last day or so, it's been due to concerns about political stability in the Mediterranean and Prussian gulf regions," he said. "It's just like a stock market, it involves hundreds of individual buyers and sellers— these are market driven prices."
Hicks said even small changes in foreign countries can affect gas prices indefinitely.
"If you look historically at what has happened in the Middle East, little events can drive gas prices," he said. "Something longer like Desert Shield and Desert Storm was very significant, we saw gas prices rise 10 percent-a-month over three months."
Hicks predicted a changing oil market in the very near future.
"I think there's every chance we're going to see significant increases in gas prices in the next few weeks, and it's going to be very highly tied to what happens in the Middle East.
10 percent a month for three months isn't unreasonable and that gets you north of $4."
The Associated Press reported Benchmark West Texas Intermediate for April delivery jumped $5.71, or 6.4 percent, to settle at $95.42 per barrel on the New York Mercantile Exchange. Oil hasn't been that high since it settled at $97.92 on Oct. 1, 2008.
Retail gasoline prices in the U.S. held steady overnight at a national average of $3.171 per gallon.
INFO:
As of 7 p.m. Tuesday night all these locations were selling gas at $3.36
BP
1630 N. Wheeling Ave. & W. Centennial Ave.
Speedway
2800 W. Jackson St & N. Tillotson Ave.
Marathon
1524 W. University Ave & N. Dll St.
Village Pantry
5302 N. Wheeling Ave. & Moore Rd.
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