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**Jerwittdergut** · 02-23-2012, 08:20 PM

Fear of Iran is inflating gas prices - Feb. 23, 2012

yup...really suks ..

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.

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.

The fear is that Iran's 2.2 million barrels a day in exports could be cut off. Iranian oil is already being sanctioned, but so far most is still finding its way to market, just at lower prices.

Worse, there's fear the 17 million barrels a day that flow through the Strait of Hormuz, one fifth of the world's total production, could be disrupted by an Israeli attack.

It's thought the Israelis are considering an attack on Iran as a means to disrupt its nuclear program, which Iran says is for peaceful purposes but many suspect is intended to produce a bomb.

But if Israel can't be persuaded to hold off an attack, $4 gas will look cheap.

"If Israel does hit Iran, all bets are off," said Mike Fitzpatrick, editor-in-chief of Kilduff Report's Energy Overview. "$150 [oil] is the first marker we'll hit."

02-23-2012, 08:20 PM	#19
Jerwittdergut Join Date Oct 2005 Posts 436 Senior Member	Fear of Iran is inflating gas prices - Feb. 23, 2012 yup...really suks .. 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. 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. The fear is that Iran's 2.2 million barrels a day in exports could be cut off. Iranian oil is already being sanctioned, but so far most is still finding its way to market, just at lower prices. Worse, there's fear the 17 million barrels a day that flow through the Strait of Hormuz, one fifth of the world's total production, could be disrupted by an Israeli attack. It's thought the Israelis are considering an attack on Iran as a means to disrupt its nuclear program, which Iran says is for peaceful purposes but many suspect is intended to produce a bomb. But if Israel can't be persuaded to hold off an attack, $4 gas will look cheap. "If Israel does hit Iran, all bets are off," said Mike Fitzpatrick, editor-in-chief of Kilduff Report's Energy Overview. "$150 [oil] is the first marker we'll hit."
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