Disruptions in the oil supply from Venezuela could push prices up, he said.
“Uncertainty can lead to predictions of scarcity and if traders of oil think that shocks are going to cause the price of oil to rise they tend to speculate and draw the price up,” Lastrapes said. “And I think we’re seeing some of that. When the supply of something goes down, that tends to draw the price up and some of these disruptions in these countries are probably leading to that.”
Lastrapes said though there is constant fluctuation with gas prices, these increases don’t tend to persist beyond the events that take place.
“If and when stability comes [to] Venezuela, the price of oil will stabilize as well,” Lastrapes said. “Since crude oil is an input in the price of gasoline, the price of gas will tend to follow the price of crude oil.”
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