BOWLING GREEN, Ky (WBKO) -- Gas prices continue to rise, causing stress for many consumers.
A local financial adviser, Jeanie Fisher, says three-fourths of America's gas prices are determined by the “crude oil” price, which is the oil that is drilled from the ground.
She says the oil is purchased through a “future's contract”, meaning the price one will pay in the future is determined early on.
Anytime there is a fear that the supply of oil may be disrupted, it is always taken into consideration. Iraq is currently the world's third largest exporter of oil.
"So, even though there may have been no disruptions to the oil supply in Iraq as of yet, just the fear that there could be is what affects the crude oil prices. That is why everybody is talking. When everybody is talking, we have to build that risk premium into the price," said Jeanne Fisher, Financial Planner with ARGI Financial Group.
Fisher says the good news is, the crude oil markets have been relatively stable during recent geopolitical events. Fisher says the United States has had a recent oil boom itself.