War affects gas prices and student spending

By Lauren Gatto
April 24, 2003

Jenna Lewandowski

The war with Iraq has affected everyone in one way or another, but the most dramatic affect of all hit closer to home then anyone could have ever realized. Gasoline prices have increased since the war has started and it has left drivers putting out more money to fill their tanks.

Oil is so ingrained in our economy. It comes from a variety of sources besides the Middle East, but due to the pending war, the United States and European economies have feared the difficulty of getting oil for the future.

“People were afraid the war would make it difficult to get oil from the whole region of the world and because of this people were holding oil supplies and building reserves. Ultimately, the everyday supply started to shrink and the crisis started to rise,” John Heiberger, department chair for the business administration department, said.

The reason gas prices have increased is either due to the short supply of oil or the people along the supply chain are taking advantage to raise the prices. It does not have anything to do with the Middle East, but consumer demand.

Heiberger said, “As people were getting nervous about the war the increase of demand was happening exactly the same time those people who were importing the oil were trying to store it just in case they had a problem later.”

“Being a commuter, I’m constantly using my car and now with the cost of gas going up it has put a damper on my expenses,” junior Natasha Williams said.

If the United States cannot get their oil from the Middle East they do have other sources to turn to because gas can move across borders. Since Saudi Arabia makes a lot of money with oil they take that money and invest it into the U.S. and European stock markets. So if the market declined, they would get hurt as well.

Dependence on the Middle East for oil is not as great. It still cost more to drive. “It depends on drivers priorities if they should cut back or not, but it hasn’t been happening,” Heiberger said.

Posted to the web by Lauren Joseph

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Lauren Gatto

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