Investor Tobin Smith: US Gas Prices May Climb on Iraq Instability

Friday, 13 Jun 2014 07:00 PM

By Sean Piccoli

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
With political violence in oil-rich Iraq pushing up prices of global crude, U.S. consumers can expect gas prices — and the cost of their vehicle fill-ups — to follow suit, market analyst and investor Tobin Smith told Newsmax TV on Friday.

But Smith, CEO of Nextbigthinginvestor.com, warned "Midpoint" viewers and host Ed Berliner against projecting too much future price-hike fear on to Iraq's Sunni insurgency.

"Those are well-protected sites," Smith said of the wells, refineries and pipelines that allow Iraq to produce some 2 million barrels of oil a day.

Story continues below video.



While that figure has fallen of late, Smith said it's still well above the roughly 500,000 barrels daily that Iraq was producing only 18 months ago.

He also said Saudi Arabia remains a backstop for the global oil market, and can raise its own output substantially to counter supplies lost elsewhere and help keep oil prices stable.

Smith was joined by Jeff Yastine, editorial director of Newsmax finance newsletters, who said the "resiliency" of oil markets means they can handle a variety of global developments.

Yastine pointed to energy-hungry China's global oil buying spree — part of a national plan to create a large strategic reserve. Those purchases have not driven crude prices up, said Yastine.

Smith said there have been at least four oil-price scares since the start of the "Arab Spring" popular uprisings, and in every instance oil prices have fallen back after a run-up.

But he and Yastine agreed that some additional pain at the pump in the United States is likely in the near term, and could continue through 2014 if instability grows or fighting spreads in the Middle East.

Smith noted that in some U.S. markets, drivers are already paying $4.50 a gallon for premium fill-ups, and he said there are scenarios where that price could hit $5 by year's end.

Related Stories:

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Iraq Veteran: More 'Effective' US Action Against ISIS Coming

Friday, 24 Oct 2014 22:23 PM

The upcoming midterm elections have temporarily postponed a more concerted U.S. military campaign against the Islamic St . . .

Bernard Kerik: Police Need to Learn Ebola Protocol

Friday, 24 Oct 2014 22:00 PM

Police departments must quickly learn air-tight protocol when dealing with suspected cases of the Ebola virus , but that . . .

Danny Aiello: Childhood Eczema Made Me Hollywood Outsider

Friday, 24 Oct 2014 21:46 PM

Veteran actor Danny Aiello says he's always seen himself as "an outsider" who is not part of the slick Hollywood crowd , . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved