HUNTSVILLE, AL (WAFF) - The price of oil rose above $107 Monday as violence worsened in Iraq with reports of a massacre by Islamic militants, raising fears of widening instability in the country, a key energy producer.
The northern town of Tal Afar became the latest to fall to the militants, who have already captured a vast swath of territory including Iraq's second-largest city, Mosul. The militants, who on Sunday posted graphic photos of truckloads of Iraqi soldiers that they apparently captured and killed, vow to march on Baghdad.
After rising 4.1% last week, benchmark U.S. crude for July delivery rose $0.36 to $107.27 - the highest in nine months - in electronic trading on the New York Mercantile Exchange.
Brent crude, a benchmark for international oils, gained $0.63 to $113.09 a barrel in London.
The capture of Mosul, a key gateway for Iraqi crude, raised worries about whether the country can rebuild its energy infrastructure and raise production to meet global demand.
Tom Kloza is the chief oil analyst at OPIS and GasBuddy.com. He recently told CNN Money that, "There is an excellent chance that U.S. gasoline prices may rise to new 2014 highs in the next week or so."
The current national average is $3.65 per gallon. If oil prices keep heading higher, we could see a $0.20 jump per gallon.
Although prices will climb, Kloza doesn't believe that gas prices will cross the $4 mark at the national level.