Skip to comments.Fear of Iran is inflating gas prices
Posted on 02/23/2012 1:59:36 PM PST by Signalman
NEW YORK (CNNMoney) -- Tensions with Iran are adding at least 30 cents to a gallon of gasoline in the United States, and experts say gas prices have only just begun to rise.
Gasoline prices have surged over 10% in the last two months, largely tracking the runup in oil prices, which have increased by a similar amount and are now at a 9-month high.
Several factors have caused oil prices to rise, including the sense that the economy is improving and supply disruptions in a handful of minor oil producing nations.
But the biggest factor by far, say analysts, is fear that tensions with Iran will lead to an all-out war that causes a disruption in oil supplies.
"The market right now is fairly well supplied," said John Kingston, director of oil, at the analytics firm Platts. "You've just got a significant fear factor that things could get worse."
Kingston noted that OPEC is actually producing more oil right now than is needed to keep pace with global demand. As such, stockpiles are rising.
(Excerpt) Read more at money.cnn.com ...
Are we so tied at the hip to derivatives that reality is now based exclusively on guesstimations on the future?
Talk about the tail wagging the dog.
Then we need to go ahead and take that out of the equation.
nope....it’s the cut off of ethanol subsidies
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.