The growing conflict in Iraq will drive gas prices in the U.S. higher, said the American Automobile Association (AAA).
The trend for the past three years is that gas prices decline for the month of June, with gas prices going down by about 20 cents per gallon. However, the turmoil in Iraq may prevent the trend from continuing, with the average of gas prices nationwide already up by 5 cents over the same month last year.
AAA made a prediction that the prices of gas will stay in the $3.55 to $3.75 per gallon range. However, with the price of crude nearing nine-month high levels, gas prices could very well go beyond $3.70 per gallon in the next few days, which is the highest so far for 2014.
Currently, three states already have gas prices that are over $4 per gallon: Hawaii at $4.35 per gallon, California at $4.09 per glalon and Alaska at $4.06 per gallon. The gas prices for these three three states have been above the $4 mark for almost a month now, and with the impending increase in gas prices, these states will likely continue selling gas over a $4 price.
For most of the country, gas prices have been steady this month, with gas price changes of an average of only 2 cents. Last month, however, saw five states incease gas prices by 5 cents or more, with the five states being Montana and Ohio, which increased gas prices by 6 cents, and Arkansas, Illinois and Missouri, which increased gas prices by 5 cents. Alabama, which decreased gas prices by 11 cents, Georgia, which decreased gas prices by 8 cents, and South Carolina and Florida, which decreased gas prices by 7 cents, are the states that lowered gas prices by the amount.
A major disruption in oil world supply is still unlikely though, as long as the dispute in the country does not escalate to bigger proportions. Experts said that the current gas price issue spurred by conflict in Iraq is not similar to the OPEC oil embargo in 1973, which was then pushed forward by the Arab-Israeli War. It is also not similar to the world oil crisis of 1979, which was caused by the ouster of the Shah of Iran in 1979.
"The good news is that the United States, here domestically, we've stepped up our crude oil production and our imports, coming from the Western Hemisphere primarily," said Mark Jenkins from AAA South in Tampa. "Only about 29% of our crude oil and petroleum imports come from the Persian Gulf."
