USA*2014

[USA*2014]

CRITICAL MASS

In response, Iran, which is the world's third largest exporter, has threatened to withhold its own oil deliveries and to block the Strait of Hormuz, through which one-fifth of the world's oil flows.

While neither scenario is likely, it has prompted traders to buy oil as protection against a possible shortage. Phil Flynn, an analyst at PFG Best, says the Middle East tensions have added $20 per barrel to the oil price.

Also, a severe cold snap has gripped Central Europe this year, increasing demand for heating oil and helping push Brent prices higher. That in turn contributes to high gasoline prices in the U.S., since many refineries use Brent to make gasoline. Gas prices are up about 25 cents this year.