NEW YORK Violence in Iraq is pushing gas U.S. gasoline prices greater throughout a time of 12 months they normally decline. The nationwide common value of $3.67 per gallon is the very best for this time of year since 2008, the yr gasoline hit its all-time high.
The violence that erupted in Iraq final week hasn’t threatened the principle oil-producing regions or reduced exports. Still, global markets reacted by sending the value of oil up 5 percent over the previous week. So, as a substitute of the usual sluggish slide in gasoline costs between Memorial Day and July four, drivers have seen a rise.
The national common will doubtless quickly surpass this year’s high of $3.70 per gallon, set on April 28, however analysts see little chance of it topping $three.90, as in 2011 and 2012.
url:U.S. fuel value increase blamed on violence in Iraq
How is this possible? I do not imagine Iraq exports sufficient oil to the United States to make an impression on the value of oil.
Facts to contemplate:
– In 2012, net imports supplied 40% of the petroleum and other liquids consumed within the United States. Alternatively stated, 60% of petroleum and other liquids consumed are produced inside the United States.
How dependent are we on international oil?
– Prime sources of internet crude oil and petroleum product imports:
2. Saudi Arabia (13%)
three. Mexico (10%)
four. Venezuela (9%)
5. Russia (5%)
url: How dependent are we on international oil?
– The U.S. will surpass Russia and Saudi Arabia because the world’s top oil producer by 2015, and be near energy self-sufficiency in the following two a long time, amid booming output from shale formations – International Power Agency – Bloomberg
– Iraq, is the world’s seventh-largest oil-producing country
Understand Iraq’s Affect On Global Oil In 4 Easy Charts
I think I made a compelling case that Iraq civil turmoil shouldn’t be inflicting U.S. prices at the pump to increase. So what is?