Osama bin Laden is dead, gas prices up
Crude oil rose above the $114 mark on Monday morning, just mere hours after the government reported the death of Osama bin Laden by a navy seals agent. Friday’s oil price was at $113.93 per barrel, according to TheStreet, and has been around the $113 mark for the last few weeks. There’s speculation that the death of bin Laden could raise the premium of oil due to fear that al Qaeda will be targeting the production in a way to refute against the U.S.
However, analysts also believe it may be mere coincidence that oil prices went up today:
Ian Bremmer, the president and founder of Eurasia Group, which advises financial firms on Middle East politics and energy policy, said in a statement emailed to TheStreet, "Despite the initial market impact on oil prices, there's really no significant impact here on oil production or transit. Al Quaeda's prominence in Yemen and Saudi Arabia never meaningfully threatened Saudi oil production; so no change with Bin Laden's death."
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National security concerns and terrorist threats generally lead to higher commodity prices and this has definitely rung true in recent months – especially as the violence in Libya continues.
Matt Smith, commodities analyst at Summit Energy, tells the website that "the first week of the month is conducive to oil prices testing new limits, with the release of the ISM manufacturing data and, later in the week, the monthly jobs reports from ADP (on Wednesday) and the government (on Friday)."
Gas pump prices are still climbing with the national average for a gallon of regular rose by a penny on Monday to $3.95. However, if you’re living in California, you’re well aware that gas prices have gone far beyond the $4 mark, which is also up more than $1 than the same time last year.