MCLEAN, Va. – Simply put, "It's getting ugly,'' according
to Patrick DeHaan, senior analyst for GasBuddy.com. "First and foremost,
the political problems in Egypt are driving crude oil prices, but there has
also been a sharp drop in oil supplies the past two weeks. This is coming at a
time when demand is at its annual July peak," he told USA Today last week.
The newspaper continues that although Egypt is not a major
oil supplier, the ongoing “political woes threaten Middle Eastern shipments and
were the catalyst behind crude oil prices rising to 15-month highs” early last
week. West Texas Intermediate crude oil hit $105.42 a barrel last Friday after
starting the week on Monday at $102.78 a barrel.
Last week, the national average for gasoline increased five
consecutive days. "We may be on a roller coaster for the rest of the
summer,'' DeHaan said.
Meanwhile, Francisco Blanch, head of commodities and
derivatives research at Bank America/Merrill Lynch, told the newspaper that the
increase is temporary. "I don't think the run-up is sustainable,” he said,
adding, "I give it a month."