It’s no real mystery why we’re paying through the nose for gasoline right now. I suggest, however, that you might consider moving closer to transit or demanding more of it if this bothers you.
Market players are worried that further unrest in the Middle East and North Africa could result in greater supply disruptions. Evans mentions one dire scenario in which Saudi Arabia and Iran engage in the struggle for power in Bahrain between the ruling Sunnis and the Shi’ite majority. This could put shipments from the entire Persian Gulf region at risk. “The $112 price is basically a compromise,” says Evans. “Market players are betting that there is a 50 percent chance the price will fall back to $82 and 50 percent chance that it will spike up to $140 per barrel.”