US Gas Price is Almost at a Record Breaking Level due to High Oil Prices

US Gasoline prices are nearing record breaking highs in the month of February with the continuous increase of oil prices in the midst of Middle East conflicts.

The Daily Fuel Gauge Report of the of the AAA or the Automobile Association of America shows average gasoline prices at a high of almost 25 cents since the year started.

Recently, the average US price for regular gas increased to $3.565 per gallon. That marked a growth of 1.5% compared to the average  price of the previous week which was at $3.511 per gallon. Moreover, it is also a 12.5% rise in the average oil price of $3.168 per gallon during the previous year.

The sudden increase in gasoline costs occur after the recent crude price increases.

Several days ago, current crude oil prices reached the highest level in nine months at a per barrel cost of $105. That happened following Iran’s statements that it had stopped its shipments to France and Britain in retaliation to the European Union’s plan to impose an embargo on its oil beginning July this year and freeze the assets of the Central Bank of iran. Benchmark oil prices for March delivery grew by $1.7% or $1.77 cents to reach $105.01 per barrel in the New York Mercantile Exchange electronic trading.

In the past weeks, the oil minister of Iran already expressed that his country might cease their exports to European nations they consider as hostile.

The sanctions of the European Union and the United States are aimed at Iran, who is alleged to be pursuing their nuclear weapons program. But, Iran has continuously denied the allegation of the West and says that their program is for peaceful purposes as it is aimed in the production of energy.

By Chris Termeer