Oil prices surged yesterday due to increasing instability in Iraq. As Militants took control of Mosul and Tikrit, two of Iraq’s largest cities, the Brent and the West Texas Intermediate rose to their highest levels in months. According to Bloomberg:
Brent crude oil rose to the highest since the start of March and West Texas Intermediate to an eight month high as violence escalated in Iraq, the second-largest producer in OPEC.
Brent rose as much as 2.1 percent to $112.29 a barrel. WTI, the U.S. benchmark, advanced 1.9 percent.
This has an immediate impact on consumers who should now expect to pay more at the pump. Also, though it is too early to speculate where prices will go in the future, the possibility exists that the instability in Iraq, along with other factors, will continue to keep oil prices high throughout the summer driving season.
Read More- “Brent, WTI Oil Prices Surge as Conflict Escalates in Northern Iraq” (Anthony DiPaolo and Ben Sharples, Bloomberg Business Week)