MN gas prices up due to concerns over Iraq
Average retail gasoline prices in Minnesota have risen 3.5 cents per gallon in the past week, averaging $3.54/g Sunday, according to GasBuddy’s daily survey of 2,856 gas outlets in Minnesota.
This compares with the national average that has increased 1.8 cents per gallon in the last week to $3.65/g, according to gasoline price website GasBuddy.com.
Including the change in gas prices in Minnesota during the past week, prices Sunday were 7.3 cents per gallon lower than the same day one year ago and are 4.1 cents per gallon higher than a month ago.
The national average has increased 2.6 cents per gallon during the last month and stands 3.7 cents per gallon higher than this day one year ago.
“The national average has stayed relatively flat for the last month, but that appears to be over, as the escalating situation in Iraq takes hold and drives crude oil and retail gasoline prices higher,” said GasBuddy.com Senior Petroleum Analyst Patrick DeHaan.
“Motorists in some areas of the country have already seen slight price increases, and although the situation is still in its early stages, motorists should be ready for higher gasoline prices if the situation in Iraq threatens the ability of Iraq to export crude oil. While the U.S. only receives about 300,000 barrels of Iraqi crude per day, the concern is about the other 3 million or so barrels per day that Iraq pumps, which could be at risk of disruption. It’s that perceived threat that may cause the national average this week to rise 3-6 cents per gallon.
“The bigger picture here is that the timing of the situation in Iraq could threaten the possibility that motorists see lower prices this summer, as we had anticipated in our much earlier forecasts,” DeHaan said.