Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Analyst: Fall Of Baghdad Would Make Current Gas Prices ‘Look Like A Bargain’
CBSLA.com) ^ | June 13, 2014 10:46 AM | Pete Demetriou

Posted on 06/13/2014 2:05:42 PM PDT by BenLurkin

LOS ANGELES (CBSLA.com) — Oil industry analysts are warning a brewing civil war between Islamic militants in Iraq could potentially send gas prices soaring here in the Southland.

KNX 1070′s Pete Demetriou reports the price of crude oil has shot up to $107 per barrel – the highest in 10 months – on reports that soldiers with the al-Qaeda-inspired Islamic State of Iraq and Syria captured two towns in an ethnically mixed province northeast of Baghdad. The average price of a gallon of self-serve regular gasoline in Los Angeles County dropped three-tenths of a cent Friday to $4.129, its lowest since April 7, according to figures from the AAA and Oil Price Information Service. While that price is nearly 13 cents more than one year ago, most experts are predicting a relatively tame 7 to 10 cents a gallon increase in the next two weeks as the summer season kicks off.

But any reduction in the flow of Iraqi crude due to the ongoing Islamic insurgency in the northern Iraq cities of Mosul and Tikrit could have worldwide economic consequences, according to oil industry analyst Phill Flynn, who said speculators are watching for the worst-case scenario.

“They think that Baghdad will not fall and that will be a more spirited defense of that city,” Flynn said. “But if it does fall and if the terrorists move further south, the price you’re paying at the pump today is gonna look like a bargain in a couple weeks.”

CBS News reports that a cellphone video from the Kurdish-controlled city of Irbil in northern Iraq showed the Islamic militants putting on a show of force in Mosul, parading vehicles captured from Iraq’s military through the country’s second biggest city.

A fighter using a loudspeaker urged the people to join the militant group “to liberate Baghdad and Jerusalem,” according to CBS News.

President Barack Obama said Friday he is weighing a range of options for countering the violent Islamic insurgency in Iraq, but he warned government leaders in Baghdad the U.S. will not take military action unless they move to address deep-seated political troubles.

“We’re not going to allow ourselves to be dragged back into a situation in which, while we’re there we’re keeping a lid on things, and after enormous sacrifices by us, after we’re not there, people start acting in ways that are not conducive to the long-term stability and prosperity of the country,” Obama said from the South Lawn of the White House.

The president did not specify what options he was considering, but he ruled out sending American troops back into combat in Iraq. The last U.S. troops withdrew in 2011 after more than eight years of war.

Flynn said crude analysts will closely watch the developments in the region over the next few days.

“We’re gonna see some type of uptick; how dramatic it will be will probably be dependent on the events over the next 24 to 48 hours,” Flynn said.


TOPICS: Business/Economy; Foreign Affairs; War on Terror
KEYWORDS:
Navigation: use the links below to view more comments.
first 1-5051-55 next last

1 posted on 06/13/2014 2:05:42 PM PDT by BenLurkin
[ Post Reply | Private Reply | View Replies]

To: BenLurkin

Hope ‘n Change.


2 posted on 06/13/2014 2:06:32 PM PDT by TigersEye ("No man left behind" means something different to 0bama.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: TigersEye

King Obama is smiling


3 posted on 06/13/2014 2:07:25 PM PDT by austinaero
[ Post Reply | Private Reply | To 2 | View Replies]

To: BenLurkin

Then Obama will say the Oil companies are making a killing and wants to tax the money away from them which will cause gas price to go even higher ,it all helps stop Global warming don’t you know ,D’oh


4 posted on 06/13/2014 2:12:46 PM PDT by molson209 (Blank)
[ Post Reply | Private Reply | To 1 | View Replies]

To: BenLurkin

That’s just an added bonus to Obama.


5 posted on 06/13/2014 2:12:59 PM PDT by caligatrux (...some animals are more equal than others.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: BenLurkin

Glad I walk.


6 posted on 06/13/2014 2:12:59 PM PDT by RIghtwardHo
[ Post Reply | Private Reply | To 1 | View Replies]

To: TigersEye

Finish the Keystone Pipeline. What are you guys doing on capitol hill? Move!


7 posted on 06/13/2014 2:13:23 PM PDT by lulu16 (May the Good Lord take a liking to you!)
[ Post Reply | Private Reply | To 2 | View Replies]

To: BenLurkin

Obama is thinking — never let a crisis go to waste. Higher oil prices will make solar, wind, and alternative fields look better in comparison. It also reduces economic growth. People are more scared and many unfortunately turn to government. hese are things the Left likes


8 posted on 06/13/2014 2:13:29 PM PDT by plain talk
[ Post Reply | Private Reply | To 1 | View Replies]

To: BenLurkin

No War for Oil!

*war to try and save the electoral prospects of the Democrat Party in November, now that’s another matter


9 posted on 06/13/2014 2:13:38 PM PDT by Buckeye McFrog
[ Post Reply | Private Reply | To 1 | View Replies]

To: BenLurkin

Good thing golf cart are electric!


10 posted on 06/13/2014 2:16:10 PM PDT by 11th Commandment ("THOSE WHO TIRE LOSE")
[ Post Reply | Private Reply | To 1 | View Replies]

To: BenLurkin

And Russia has set MONDAY as the final deadline for a gas agreement with Ukraine, warning that they will cut them off.

Perfect storm coming, and it is all in Obama’s lap. In fact, he and his minions worked to make it this way.


11 posted on 06/13/2014 2:16:37 PM PDT by tcrlaf (Q)
[ Post Reply | Private Reply | To 1 | View Replies]

To: 11th Commandment

12 posted on 06/13/2014 2:16:59 PM PDT by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both.)
[ Post Reply | Private Reply | To 10 | View Replies]

To: BenLurkin

Oil is going to sky-rocket and in turn the stock market may show a big backlash also. The implications with Iraq are huge and are bound to have a big economic impact. I wonder if Obama has a problem with a bad stock market or economy? He could ride in with the gov and rescue us all.


13 posted on 06/13/2014 2:17:37 PM PDT by Wavy_Wally
[ Post Reply | Private Reply | To 1 | View Replies]

To: plain talk

bttt


14 posted on 06/13/2014 2:17:38 PM PDT by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both.)
[ Post Reply | Private Reply | To 8 | View Replies]

To: BenLurkin

I don’t understand why that would affect prices here. We have so much of our own drilling going on that surely we aren’t still importing tons of oil, are we? Maybe I’m just not up on this subject....


15 posted on 06/13/2014 2:19:21 PM PDT by leapfrog0202 ("the American presidency is not supposed to be a journey of personal discovery" Sarah Palin)
[ Post Reply | Private Reply | To 1 | View Replies]

To: GunsareOK

Watching TV analysts yesterday - predictions(before taxes) ran from $4.50 to $6.50.


16 posted on 06/13/2014 2:19:52 PM PDT by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: leapfrog0202

Apparently the Oil internationals would raise prices everywhere to reflect global market rates.


17 posted on 06/13/2014 2:20:41 PM PDT by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both.)
[ Post Reply | Private Reply | To 15 | View Replies]

To: BenLurkin

I figure that is one of the key reasons why he won’t intervene. It is one more step taken on his part to impoverish the middle class.

America, Barack Obama is taking every chance he gets to reach in your pocket and steal your hard-earned money. My disdain for him is immense and it grows by the second. . . .


18 posted on 06/13/2014 2:20:41 PM PDT by RatRipper (The political left are utterly evil and corrupt)
[ Post Reply | Private Reply | To 1 | View Replies]

To: BenLurkin

With all due respect to the experts quoted in this article, according to most all of the analysts I follow predict no such debacle, in one case some are predicting more oil may flow as a result of this, not less.

A second assumption made looks erroneous or dated as well, i.e. that Baghdad won’t fall. According to recent stories, that city is already under siege; the water supply has been severed and refugees are fleeing the city in near panic. Baghdad may well fall within the next 24 hours. The critical “Balad” air base north of Baghdad is being evacuated of its US contractors without the aid of the US airforce which hasn’t been activated to help. They are being flown out by the Iraqi Airforce to Baghdad and from there to Abu Dhabi.

The fact of the matter is that Isis or Isil, depending upon the source is moving at lightning speed and they’ve caught everyone flat footed. I just hope and pray the crap bird US gov’t can wake up soon enough to evacuate the US embassy in time to save the personnel.


19 posted on 06/13/2014 2:20:42 PM PDT by Rich21IE
[ Post Reply | Private Reply | To 1 | View Replies]

To: plain talk

Few will accept the fractional value of alternative energy sources. If anything, this crisis will give fracking greater interest.


20 posted on 06/13/2014 2:21:47 PM PDT by Gene Eric (Don't be a statist!)
[ Post Reply | Private Reply | To 8 | View Replies]

To: leapfrog0202

“I don’t understand why that would affect prices here. We have so much of our own drilling going on that surely we aren’t still importing tons of oil, are we? Maybe I’m just not up on this subject....”

Probably because of the mess world markets have made. In good stable times, it keeps prices low, but in times like these when a nation should be able to keep its resources local, the oil will just flow to the highest bidder, thus prices will jump. Obama is right about one thing, oil is a shackle but nobody has developed a good alternative, unless we want to walk and live in the dark.


21 posted on 06/13/2014 2:21:52 PM PDT by DonaldC (A nation cannot stand in the absence of religious principle.)
[ Post Reply | Private Reply | To 15 | View Replies]

To: lulu16

They are not doing that that is for sure.


22 posted on 06/13/2014 2:22:26 PM PDT by TigersEye ("No man left behind" means something different to 0bama.)
[ Post Reply | Private Reply | To 7 | View Replies]

To: leapfrog0202

Oil is fungible. What is drilled here doesn’t necessarily stay here. If the world wide price of oil goes up then we can’t keep it lower here because it will be purchased by someone else and the price goes up to meet that export demand.


23 posted on 06/13/2014 2:23:06 PM PDT by Codeflier (Bush, Clinton, Bush, Obama - 4 democrat presidents in a row and counting...)
[ Post Reply | Private Reply | To 15 | View Replies]

To: caligatrux

Here in California there is an 8% sales tax on gasoline on top of the other gasoline taxes. Jerry Brown and the Democrats get an extra bonus too, they get 8% of the gasoline price increase.


24 posted on 06/13/2014 2:23:07 PM PDT by forgotten man
[ Post Reply | Private Reply | To 5 | View Replies]

To: RatRipper

25 posted on 06/13/2014 2:23:20 PM PDT by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both.)
[ Post Reply | Private Reply | To 18 | View Replies]

To: forgotten man
Here in California there is an 8% sales tax on gasoline on top of the other gasoline taxes. Jerry Brown and the Democrats get an extra bonus too, they get 8% of the gasoline price increase.

Here in Taxachusetts, our dem legislature got tired of voting for gas tax increases, so they indexed the gas tax to inflation. Won't that be fun! (There is an effort underway to get a question repealing it on the November ballot)
26 posted on 06/13/2014 2:26:37 PM PDT by LostInBayport (When there are more people riding in the cart than there are pulling it, the cart stops moving...)
[ Post Reply | Private Reply | To 24 | View Replies]

To: BenLurkin

The folks Obama backed in Syria are winning, with the help of the puppet masters who control the Bush family. The response isn’t unexpected.


27 posted on 06/13/2014 2:27:03 PM PDT by PAR35
[ Post Reply | Private Reply | To 1 | View Replies]

To: TigersEye

Doesn’t anyone see that this guy is a Muslim and he’s giving our country away? I am so frustrated, that Congress doesn’t even have the presence of mind to step in and defend our interests.


28 posted on 06/13/2014 2:29:50 PM PDT by Kenny
[ Post Reply | Private Reply | To 2 | View Replies]

To: Kenny

That would conflict with defending their interests.


29 posted on 06/13/2014 2:34:08 PM PDT by TigersEye ("No man left behind" means something different to 0bama.)
[ Post Reply | Private Reply | To 28 | View Replies]

To: lulu16
What are you guys doing on capitol hill?

Fattening their wallets and getting drunk.

30 posted on 06/13/2014 2:37:37 PM PDT by CommieCutter ("For an idea to be too simplistic, it must first be proven wrong" --Thomas Sowell)
[ Post Reply | Private Reply | To 7 | View Replies]

To: RIghtwardHo

Glad I bought a bike over the winter.

A real old-timer; built in the late 1920s in Austria. Got a good deal on it (equivalent of $20), though I had to fix it up a bit. Not bad for a museum piece. :D


31 posted on 06/13/2014 2:39:10 PM PDT by AnAmericanAbroad (It's all bread and circuses for the future prey of the Morlocks.)
[ Post Reply | Private Reply | To 6 | View Replies]

To: CommieCutter

What are you guys doing on capitol hill?

Fattening their wallets and getting drunk.

Biding their time so that they get their lifetime pensions. Bunch of freeloaders.


32 posted on 06/13/2014 2:39:43 PM PDT by lulu16 (May the Good Lord take a liking to you!)
[ Post Reply | Private Reply | To 30 | View Replies]

To: BenLurkin
Analyst: Fall Of Baghdad Would Make Current Gas Prices ‘Look Like A Bargain’

They're just trying to make Obama look bad with that inflammatory claim. (Getting in ahead of the WH press office)

33 posted on 06/13/2014 2:41:01 PM PDT by Will88
[ Post Reply | Private Reply | To 1 | View Replies]

To: DonaldC; Codeflier; BenLurkin

Thanks for the information. It helped.


34 posted on 06/13/2014 3:15:13 PM PDT by leapfrog0202 ("the American presidency is not supposed to be a journey of personal discovery" Sarah Palin)
[ Post Reply | Private Reply | To 21 | View Replies]

To: BenLurkin

I thought only electricity rates would necessarily skyrocket.


35 posted on 06/13/2014 3:15:21 PM PDT by Old Yeller (Anything is possible, if you don't know what you're talking about.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: leapfrog0202
I don’t understand why that would affect prices here.

Well... that's how the ruling elite make a killing in the stock market.

36 posted on 06/13/2014 3:17:03 PM PDT by UCANSEE2 (Lost my tagline on Flight MH370. Sorry for the inconvenience.)
[ Post Reply | Private Reply | To 15 | View Replies]

To: leapfrog0202
surely we aren’t still importing tons of oil

While the US imports of crude oil have been falling, we still import over 7 million barrel a day.

http://www.eia.gov/dnav/pet/pet_move_impcus_a2_nus_epc0_im0_mbblpd_m.htm

While we only get 0.3 million a day from Iraq, all the other folks that normally get oil from Iraq will be buyiing on the same world market, trying to get more and the global price will rise.

37 posted on 06/13/2014 3:25:13 PM PDT by thackney (life is fragile, handle with prayer)
[ Post Reply | Private Reply | To 15 | View Replies]

To: BenLurkin

Remember “No War for Oil”? Well, the lefties got their wish. Not only will we not have the oil, but the most vicious barbarians will have it instead with which to finance more terror against us.

Well, I was always in favor of taking the oil if we could get it. 1, to pay for the cost of liberating the country and 2, as an offset against OPEC monopoly practices. I didn’t advocate stealing the oil, just using it to pay us back and then paying a fair market price on our terms. Its win-win-win. The American taxpayer is reimbursed, the American economy is boosted by lower energy prices and we keep a lot of cash out of the hands of the bastards who are trying to kill us.


38 posted on 06/13/2014 3:31:56 PM PDT by JewishRighter
[ Post Reply | Private Reply | To 1 | View Replies]

To: thackney

Thanks. The explanation helped.


39 posted on 06/13/2014 3:32:05 PM PDT by leapfrog0202 ("the American presidency is not supposed to be a journey of personal discovery" Sarah Palin)
[ Post Reply | Private Reply | To 37 | View Replies]

To: Gene Eric

Yes, people will tolerate the idiocy of the greenies until it begins to affect them financially. Personal economics trumps everything.


40 posted on 06/13/2014 3:43:25 PM PDT by clintonh8r (Can Juan Williams possibly be that stupid?)
[ Post Reply | Private Reply | To 20 | View Replies]

To: thackney

FRACK them!


41 posted on 06/13/2014 3:51:05 PM PDT by Leo Carpathian (FReeeeepeesssssed)
[ Post Reply | Private Reply | To 37 | View Replies]

To: TigersEye

We went out and filled up both vehicles this morning. Just in case.


42 posted on 06/13/2014 4:00:37 PM PDT by Georgia Girl 2 (The only purpose o f a pistol is to fight your way back to the rifle you should never have dropped.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: BenLurkin

How much oil do we get from Iraq? Anyone know?

Re the photo of Obama,

Caption it: “All Praise to Allah”.


43 posted on 06/13/2014 4:28:01 PM PDT by MadMax, the Grinning Reaper
[ Post Reply | Private Reply | To 1 | View Replies]

To: BenLurkin

“We’re not going to allow ourselves to be dragged back into a situation in which, while we’re there we’re keeping a lid on things, and after enormous sacrifices by us, after we’re not there, people start acting in ways that are not conducive to the long-term stability and prosperity of the country,”

Uhhhh...ain’t that EXACTLY what the clown president has accomplished?


44 posted on 06/13/2014 4:41:01 PM PDT by TalBlack (Evil doesn't have a day job.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Buckeye McFrog

No War for Oil!

*war to try and save the electoral prospects of the Democrat Party in November, now that’s another matter

I’d say that this last week was the nail in the coffin for the Dems. I’m guessing $4.40/unleaded here in by the end of the month. The good news is, that hopefully Dems will crawl back into their holes for at least the next 30 years.

And, there is so much BAD crap going on that some of it is drowning out the the other bad stuff, like the IRS “whoops, we lost two years of emails” issue.

You realize that if a private company did this, they would be toast, right? And people would be canned, immediately?


45 posted on 06/13/2014 4:48:32 PM PDT by The Antiyuppie ("When small men cast long shadows, then it is very late in the day.")
[ Post Reply | Private Reply | To 9 | View Replies]

To: Georgia Girl 2

I’ll do the same thing in the morning.

In the meantime... what if Baghdad simply rolls over? No fight? No fight = no oil jump.


46 posted on 06/13/2014 4:49:49 PM PDT by txhurl (2014: Stunned Voters do Stunning Things!)
[ Post Reply | Private Reply | To 42 | View Replies]

To: The Antiyuppie

You make excellent points, but I also said no POTUS could secure re-election with 8% unemployment, $4 gas, surging food prices, and trillion dollar annual deficits to the horizon.

And apparently he could, or at least get close enough to cheat.


47 posted on 06/13/2014 4:50:36 PM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
[ Post Reply | Private Reply | To 45 | View Replies]

To: BenLurkin

I’ve read that Saudi Arabia has enough spare capacity to easily make up for Iraq. Not sure what their interests are in this mess...I’m sure somebody will let us know.


48 posted on 06/13/2014 4:54:14 PM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
[ Post Reply | Private Reply | To 1 | View Replies]

To: BenLurkin

49 posted on 06/13/2014 4:57:09 PM PDT by 2ndDivisionVet (I will raise $2Million USD for Cruz and/or Palin's next run, what will you do?)
[ Post Reply | Private Reply | To 1 | View Replies]

To: 2ndDivisionVet

Verified even by the liberals at CR:

http://www.consumerreports.org/cro/news/2009/01/average-gas-prices-january-26-2009/index.htm


50 posted on 06/13/2014 5:01:09 PM PDT by nascarnation (Toxic Baraq Syndrome: hopefully infecting a Dem candidate near you)
[ Post Reply | Private Reply | To 49 | View Replies]


Navigation: use the links below to view more comments.
first 1-5051-55 next last

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.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson