Iran Threat Sparks Fear of Rising Gas Prices
UNDATED -- Iran has threatened to cut off oil supplies through the Strait of Hormuz if sanctions are brought against them. It's fueling speculation about a major increase in gas prices here.
Some analysts say prices could spike to as much as $5 a gallon gas this summer. But, that speculation is unfounded according to local fuel expert Jim Feneis.
Feneis owns First Fuel Banks which pre-sells gasoline.
He says no one can predict what will happen in the Middle East over the coming months.
But, he says there are three things can can cause the prices to swing violently upward. They are fear, panic and greed. Feneis believes the greed factor has already been built into today's prices and feels like it won't go much higher.
Feneis doesn't like to speculate what our prices will top out at this summer, but he says with lower demand here in the U.S., available refining capacity and Saudi Arabia's commitment to stable prices, Feneis feels like prices shouldn't go above $4 a gallon.