>I can't agree with that entirely (in part yes). I agree Iraq has had an effect, but not the greatest. The largest increase in gas prices (and oil) have been since hurricane katrina. At that time, it was blamed on hurricane katrina, but it never went back down afterwards. It only rose. The largest increases have been in the last 12 months and what is different between the periods of 2003-2007 and 2007-2008? Iraq cannot explain it all. I lean more towards control of the market, media, and futures (and perhaps an external desire to see the U.S. economy collapse).
>
>>Tracy, not sure what you're seeing inside the US, but elsewhere other things are being said about the price of oil. Sample: http://www.independent.co.uk/environment/green-living/oil-a-global-crisis-834023.html

Iraq is more stable now than it has been since the war started. If anything, prices should be down sharply because of that since mid-east stability has always been one of the phoney excuses for oil prices.

No shortage.

No supply interruptions.

No major refinery disruptions.

Open wallet. Bend over.

Oil well output is sold on contract to companies that then sell to major oil companies that export the oil to markets arouns the world.

Oddly, I'd bet 90% or more of the oil contracts in the mideast are held by the same people and organizations that own the major oil companies (albeit under different corporate and investment fund names). Essentially they sell themselves the oil, so whatever they charge is a non-issue between their companies. They then report what horrendous prices per barrel they are paying and then charge consumers a high margin over that price. Since consumers are addicted to the product and in general have been too stupid to see this coming, they have absolutely no alternative but to pay any price. The oil companies make the massive record profits the consumers see, and they make even higher profits at the well end which consumers don't seem to ask about (just blame the arabs).

The oil industry has had CNN 'predict' $6.00/ gallon gas by end of summer, just like they told them to 'predict' $4.00 gas by memorial day.

Nice, eh?

Personally I think some oil investors need to meet unfortunate ends (with I-report video) to make others think a little about screwing the planet since nothing else is being done.