BIRMINGHAM, Ala. (WBRC) – As gas prices continue to climb across Alabama, a University of Alabama at Birmingham (UAB) economist says the spike is being driven by global supply disruptions, not typical seasonal demand, and could have far-reaching effects on the broader economy.
Dr. Ben Meadows, an assistant professor of economics at UAB’s Collat School of Business, points to geopolitical tensions and constrained oil flow through a critical global shipping route as a key factor behind rising costs.
“So, when we think about what’s going on right now geopolitically with petroleum products, right?” Meadows said. “A large percentage of our petroleum products, so that is crude oil, natural gas, and even helium… all of that goes through the Strait of Hormuz.”
He explained that disruptions in that region are limiting the flow of oil into global markets…