AAA: Iraq misunderstanding expected to keep US gas prices high

As misunderstanding continues in Iraq, U.S. consumers are profitable above-average gasoline prices that strike a six-year high Wednesday for Jun 18 and are expected to sojourn adult this summer, according to a AAA.

While gasoline prices mostly rise in open and dump in June, that’s not function this year. In fact, a $3.67 normal inhabitant cost for a gallon of unchanging gasoline Wednesday is aloft than it has been on that day given 2008 and is tighten to this year’s rise of $3.70, that occurred on Apr 28, reports AAA, a not-for-profit association of 50 engine clubs.

“Despite hopes for a reduction costly summer, it looks like Americans are stranded profitable above-average gas prices,” says AAA orator Michael Green. In May, AAA likely the inhabitant normal competence decrease 10-15 cents per gallon this month, but, given a instability in Iraq, it no longer expects that.

Before Islamic Sunni militants took control final week of Iraq’s northern city of Mosul, Green says U.S. gas prices had declined 32 out of 44 days. Since then, they’ve usually risen along with tellurian oil prices, that comment for during slightest two-thirds a cost of gasoline.

“If a conditions (in Iraq) continues to get worse, American consumers can design to compensate some-more during a pump,” Green says. He says it’s probable summer prices could transcend a open peak.

The final time this happened was Jul 17, 2008, when a inhabitant normal for gas prices reached a all-time high of $4.11 per gallon. At that time, tellurian oil prices reached scarcely $150 per tub as clever mercantile expansion in Japan and China increased demand.

Oil prices are not scarcely that high, though they’ve generally risen in a final week. The U.S. benchmark wanton oil, West Texas Intermediate, hovered during $106 a tub Wednesday while Brent, a general benchmark, stood during $114 a barrel.

At this time a year ago, gas prices averaged $3.61 per gallon inhabitant though were already on a decrease from their open levels.

On Wednesday, they were adult a nickel per gallon from final week, and they exceeded $4 in 3 states: Alaska, California and Hawaii, according to AAA’s daily monitoring of sales from 100,000 gas stations nationwide. Prices were lowest in South Carolina and Mississippi during about $3.40 per gallon.

Another cost tracker,, reports that normal gas prices strike 15-month highs this week in 14 states, including a Midwestern states of Michigan, Illinois, Minnesota and Wisconsin.

Tom Kloza, comparison appetite researcher for, expects inhabitant prices to tip out during about $3.75 a gallon. “That’s aloft than what we envisioned progressing this year,” he says, “but it factors in a fear reward that is now reflected in wanton oil prices.”

Contributing: Gary Strauss

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