Gas price could rise on Middle East turmoil image

Surely you have watched in astonishment as Iraq slowly falls (back) into the hands of Jihadist anarchists – as the state’s army has been pushed back from vast areas of territory.

That means trouble for the world economy, as the oil prices and subsequently the price of gasoline and diesel, would rise – adding more pressure on consumers and automakers alike.

Iraq, which is a leader among the countries that form the well-known Organization of Petroleum Export Countries (OPEC), has already triggered ail prices increases over the course of the year, amid fears of escalating violence in the country.

“AAA expects that drivers will experience little relief at the pump and prices are likely to remain near a range of $3.55-$3.70 per gallon, which is similar to last summer’s range of $3.47-$3.67,” reported the organization. Although, “continuing geopolitical concerns, major refinery disruptions or a severe hurricane season could send the national average higher than anticipated,” AAA continued.

For now, aggregators in the US, for example, have not yet reported any major changes in prices across the states, but analysts predict gasoline prices could increase as much as 10 cents per gallon. The general oil price will depend severely on the ability of the other OPEC members to offset losses from Iraq – or other important oil producers, like Russia and Iran could offer more on the global markets.