Tensions in Iraq forcing oil prices up

WEST SPRINGFIELD, Mass. (WWLP)– As turmoil in Iraq continues to mount, there is concern about how this could impact oil prices.  22News is working for you with a look at how that is affecting our energy costs here.

Crude oil gets distilled down to make a number of things we use everyday, like home heating oil, diesel fuel, the gasoline you put in your car. There are even components of it in the asphalt used to pave the roads.

Iraq produces nearly 3.5 million barrels of that oil each day.

Monday oil prices for July’s deliveries jumped $0.36 to reach their highest levels in nine months; something that’s frustrating some folks here in western Massachusetts, like Alex Perez.

“At the end, we end up paying for everything happens over there anyway. I know our gas prices are going to go up, but I don’t think they’re going to go down anytime soon either. I don’t want any more soldiers to go over there and die either,” Perez told 22News.

22News is working for you with a look at how this increase is forcing things you pay for everyday to also go up. Wholesale gasoline rose $0.24, pushing it above $3.00 per gallon, and wholesale heating oil jumped $0.37 to almost $3.00 per gallon.

Analysts, however, say that they don’t expect to see the U.S. gas prices go above the national average of $4.00 per gallon

For those of you getting ready for your summer road trip, you may want to fill up before you leave the state. Gas prices in Massachusetts are about $0.02 below the national average. Neighboring New Hampshire’s prices are about the same those here, but if you’re driving south, Rhode Island and Connecticut’s prices are between 10 and 30 cents higher than the average price here in Massachusetts.

 

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