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Gas Prices Could've Been A Whole Lot Higher

Jun 30, 2014, 21:34 IST

Gas prices are near their highest levels in a year, about $3.67 a gallon, as troubles in Iraq have been causing oil futures to pop.

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But it could be way worse for U.S. drivers. Thanks to the U.S. shale boom, global balances have remained largely in tact despite outages elsewhere. Plus, there still hasn't been a major outage of Iraqi barrels since April, when a pipeline into Turkey came under attack.

Here's the percent-change-from-year-ago chart via FRED. We are just 3% above where we were this time last year:

FRED

And another view, from AAA. 2014 is in red. The agency says we're looking at the highest July 4 gas price levels since 2008 - but again, we've already been at higher levels earlier this year.

"Market concerns about a supply disruption in Iraq are calming," said Mark Jenkins, spokesman, AAA.

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AAAWhile traders are hedging in case things take a turn for the worse in the Middle East, for now we are not seeing anything terribly out of the ordinary.

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