The escalating tensions in Iraq have spilled over the energy markets again on Thursday, pushing the crude oil prices to an eight month highs. Experts believe that the price of gasoline is likely to increase even further in the United States.
The benchmark West Texas crude oil increased $2.13 to $106.53 per barrel, and Brent Crude increased $3.21 to $113.16 as oil-rich northern Iraq is facing tension and the militants have threatened to seize the control of the south, where much of the nation’s daily 3.4 million barrel output is extracted. According to the latest reports the future predicted prices for gasoline have climbed 8 cents to $3.08 a gallon on New York Mercantile Exchange.
The jumps are likely to have a impact on the price of the regular unleaded gasoline, now about $3.64 per gallon, up 5 to 10 cents in the coming days and the summer prices have been anticipated to be elevated.
The production of oil in Iraq has already been cut by about 10%, or about 300,000 barrels per day since March.
Gasoline had an average price of $3.58 per gallon between Memorial Day and Labor Day last year. But the retail prices have averaged to about $3.65 for the past month.