Start the conversation
Money Morning Global Energy Strategist Dr. Kent Moors appeared on CNBC's "Closing Bell" on Friday to discuss what geopolitical conflict in Iraq will do to crude oil prices and the effect on gas this week.
On Friday, Islamic State of Iraq and Greater Syria (ISIS) insurgents attacked Baji, an area about 200 miles north of Baghdad. Baji houses the largest refinery in Iraq, which accounts for almost a third of the country's refining capacity. Although the Iraqi government said it held Baji against the attack, ISIS has control of areas just outside the refinery.
With the news, Moors said that there are already indications of accelerating volatility moving forward in very near-term futures contracts.
"Now an uncertainty factor is taking over," Moors said. "We are running into a problem that we're not able to determine a genuine value of crude oil based on its market price, and that guarantees that the divergence between futures prices and the regular consignments of oil will go up."
Everyone wants to know why the price at the pump just keeps going higher. Read Moors' latest story to discover the "new normal" for gas prices - and what it means for your wallet...