KANSAS CITY, Mo. — Tensions half a world away have caused gas prices in the metro to rise by more than 11 cents this past week. Now some are predicting gas prices may rise to more than $4 a gallon.
It all depends on what happens in Iraq. Militant Islamists are marching against government forces in several major cities, and this perceived threat to the oil supply in Iraq is causing gas stations in the United States to raise their prices.
Right now, there is no real threat to Iraq’s oil supply but the “perceived” threat is causing the cost of oil to rise.
If these Islamists were to take over and cut off oil to the rest of the world, gas prices could skyrocket — some say between $4 and $5 a gallon.
“For people at the pumps, it’s a bad scene, because there are no real reasons for oil to drop here,” Daniel Dicker, oil trader, said. “The risks continue to remain on the upside. Iraq is only one of several geopolitical issues that are out there, and, in fact, we’re going to see higher prices.”
The average price of a gallon of gas in Kansas City is 24 cents higher than it was last month. And most concerning, gas is 14 cents higher a gallon than it was this time last year. Just a few months ago, many experts predicted gas prices would drop this summer because of all the hybrid cars being bought, causing a falling demand for gas. But the experts did not foresee this violence in Iraq.