Low Gas Prices Despite Iraq Crisis

By Joe Gullo , CNN

Published 08/13 2014 10:04AM

Updated 08/13 2014 10:09AM

Fuel prices here at home are seeing little impact from the latest crisis in Iraq. U.S. forces are currently engaged in an open-ended bombing campaign against militants in Iraq, an oil-rich country

The average price for a gallon of gas is $3.48. That's cheaper than it was a year ago, even with the ongoing fighting in Iraq.

Geography is key, according to a Chief Oil Analyst at Gasbuddy.com. Tom Kloza tells CNN Money most Iraqi oil comes from Baghdad and other regions in the south of the country.

Those areas haven't come under attack from ISIS combatants. The fighting is concentrated in the north, a region that contributes only about 15 percent of Iraq's oil production.

Iraq is also not as critical to global fuel production as it once was according to another energy analyst.

The biggest factor keeping prices at American pumps from spiking is U.S. oil production. America put out a little more than 13.6 million barrels of oil per day in the second quarter of this year, that's up 50 percent from 2009.

Put some of these factors together, and it explains why we have a cushion for oil prices while the fighting continues in Iraq.

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