The price of crude oil has risen by nearly 13 percent so far this year. And Marketwatch predicts that oil will close in on the $70-per-barrel mark in October. From gunmen storming the National Oil Corporation in Libya, to sanctions on Iranian oil causing a reduction in production, geopolitical tension is affecting prices.
Matt Smith, director of commodity research for ClipperData, says production decreases mean lower supplies and higher prices are ahead. He says that the U.S. is focused on keeping gas prices low, since increasing prices could have a “detrimental impact” on the economy.
What you’ll hear in this segment:
– How the attack on Libyan National Oil Corporation impacts the U.S.
– Why Iranian oil exports are tanking
– How Saudi Arabia intends to fill the gap in production
Written by Alexia Puente.