The price of oil climbed to its highest level in more than two years yesterday as the US edged closer to taking action against Syria for the alleged use of chemical weapons.
Benchmark oil for October delivery rose $1.09, or 1 percent, to $110.10 a barrel on the New York Mercantile Exchange. That's its highest closing price since May 3, 2011. Earlier, oil climbed as high as $112.24.
Oil has surged 27 percent since touching a low for the year of $86.68 on April 17.
The average price for gasoline is $3.55 a gallon in the US, according to the AAA's Daily Fuel Gauge report. Because of ample supplies, the price of gasoline has remained fairly steady during August even with the recent surge in oil.
But US Bank Wealth Management national investment consultant Dan Heckman cautions that high oil could eventually have an impact. "The longer you have this sustained high level ... ultimately that will transfer to gasoline prices."
In the run-up to the first Gulf War, oil prices more than doubled from under $20 in July of 1990 to $40 a barrel in October of that year.
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