Gas Prices On Rise With Conflict In Iraq

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ST. LOUIS ( KTVI)- With the Fourth of July approaching those hitting the roads might be in for a shock at the pump. The violence in Iraq may squeeze drivers' wallets this Summer.

The crisis in Iraq has pushed oil prices jumping to a nine month high.

The U.S. average of gas across the U.S is $3.68 a gallon which is the highest price for early Summer since 2008.

Global prices have climbed five percent since rebels took over two Iraqi cities. "Higher than it was than in 2013 . Most of that has been brought on by concern and the anxiety of the oil industry about what is going on in the Middle East, " said Mike Right , AAA Vice President of Public Affairs

Experts originally predicted that prices at the pump would drop  10 to 15 cents per gallon but that's not going to happen and motorist are feeling it in their pockets. "The economy is bad    and seems like gas would be going the other way.It  should be going down it should not be going up," said  Motorist Joe Thomas.

Some Missouri stations were advertising regular unleaded near $3.70 a gallon and premium near $4.00 a gallon. "We are paying more today than we did last month, said Right

AAA travel projects 41 million Americans will journey 50 miles or more from home during the Independence Day Holiday weekend, a 1.9 percent increase from the 40.3 million people who traveled last year and a nearly 14 percent increase compared to the Memorial Day holiday weekend. The majority of travelers will be celebrating their freedom with a road trip, with more than eight in 10 (34.8 million) choosing to travel by automobile, the highest level since 2007.

The Independence Day Holiday travel period is defined as Wednesday, July 2 to Sunday, July 6.

 

AAA Travel projects 41 million Americans will journey 50 miles or more from home during the Independence Day holiday weekend, a 1.9 percent increase from the 40.3 million people who traveled last year and a nearly 14 percent increase compared to the Memorial Day holiday weekend.  The majority of travelers will be celebrating their freedom with a road trip, with more than eight in 10 (34.8 million) choosing to travel by automobile, the highest level since 2007.  The Independence Day holiday travel period is defined as Wednesday, July 2 to Sunday, July 6.

5 comments

  • Jusatyro

    The price of oil, like taxes, is a tool to raise funds

    The price of a barrel of oil has been used in the United States government foreign policies many times in the past and for many reasons..

    In W.W II the United States cut shipments of refined oil to Japan after Japan invaded China in 1939..

    In 1995 -1996 The United States worked out trade agreements involving the price of a barrel oil between Opec and other oil producing countries to help Russia falling economy after the fall of USSR(Union of Soviet Socialist Republics) .

    The United States government were afraid that the former states of the USSR might even sell their nuclear weapons to the highest bidders in an effort to stabilize Russian economy..

    A barrel of oil in Russia was going for $29.00 dollars at that time .

    Opec thought the price should be around $75.00 dollars a barrel..

    It’s not surprising that what works for Russia economy in late 1990s would also work to rebuild a war torn Middle East and help stabilize their economies after their civil wars..

    The United States used many plans in their foreign trade policies to help stabilize worlds economy.

    The Cooperative Threat Reduction (CTR) Program is another ,where, the United States government in 1991 created a program to pay Russia to destroy their own nuclear arsenal

  • Jusatyro

    Whither it’s through nationalizing , or through regulations , the price of gasoline is government controlled..

    The fact that 86 to 90 percent of the known oil reserves are owned by foreign governments.

    The only reason that price of a barrel of oil is Not higher , is the United States oil Companies has resisted a world wide move to nationalize the oil industry..

    Public private oil companies only control 7 to 10 percent of the known oil reserves..

  • Jusatyro

    Europe and Japan has had higher gas prices even when crude oil was $12.00 dollars a barrel.

    Their public transportation systems are designed to discourage automobile usages by creating taxes and fees for owning an automobile. The gasoline taxes ,automobile taxes and license fees subsidizes their public transportation systems.

    The average driver in those countries only drive 5,000 to 7,000 miles a year..

    The higher price for gasoline in foreign countries equal out about the same what an average U.S driver drives in a year (25,000-35000)

    Our trucking commercial transport industry cost is 96 cents on every dollar earn..

  • Jusatyro

    Speaking of history of rising oil prices
    The reason Middle East oil fields was chosen for development was Britain had a hand in the creation of todays Middle East after the fall of the Ottoman Empire.

    This gave the British a inside track for trade deals on the drilling rights…

    And other important fact was the fact that pouring that amount of money into the Middle East wouldn’t hurt the British and the United States economy .The Middle East didn’t have the enough natural resources and usable land ,[Water for crops, ores & minerals ] to become a major threat to British and the United States economies …

    Middle East is more of a importer of goods than any other country where oil is found…

    Others countries would have been a bigger economy threat, South America , Russia, southwestern Asia, China, just to name a few.

    Saudi Arabia ability to force other countries to join Opec though their cost advantage has deter other countries from developing their own oil fields.. This was encouraged by the United States and the British in the “past” because Britain controlled the drilling rights and United States controlled the refinery rights…

    Now because of nationalization of the oil industry ,trade agreements and as a way encourage countries to come to agreement with the united States foreign policy ,the use of the price of a barrel of oil to fund foreign countries economies…

  • Steven Sweeney

    War criminal Obozo is in bed with halliburton.Obozo gave the exact same no bid contract to them that Cheney did.Difference is, gas was 1.78 when the dog eater took office.Highest average price daily EVER by any president.War criminal Obozo should be impeached for this, as well as a littany of other crimes.Only clueless liberals like bye bye short eyes would disagree.

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