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Hernando Today

Middle East Conflict Causes Gas Prices To Rise

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By TONY HOLT

Hernando Today

Published: January 5, 2009

TAMPA - War is what it took to stop the slide in gas prices.

The ongoing Israeli-Hamas conflict in Gaza caused crude oil to increase by $9 per barrel for fear it could disrupt the flow of oil from the Middle East, according to AAA Auto Club South.

"We are reminded this week that volatility in any part of the world can be worrisome, but when it involves the Middle East, the hypersensitivity of the oil industry increased exponentially," said AAA Auto Club spokesman Gregg Laskoski.

Additionally, OPEC, which reduced oil production by 4 million barrels at the end of last year, is considering another reduction. The world's largest oil cartel, made up of 13 exporting countries, is scheduled to meet Jan. 19 in Kuwait City.

Both the national and state averages have risen since last week.

As of Sunday, the U.S. average cost for a gallon of regular gas was $1.658 - a 3 cent increase.

In Florida, prices went from $1.665 to $1.678.

Increases also were reported in Georgia and Tennessee.

Last week saw the first fuel price increase since July 2008, when the average price for a gallon of gas was higher than $4.

Reporter Tony Holt can be reached at 352-544-5283 or wholt@hernandotoday.com.

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