Gas prices rise from European economic instability

Gasoline prices reached their highest levels in nine months last Tuesday according to the CBC.

A two point five percent increase in the price of a barrel of regular gas has been noticed in New York.

This is due to European leaders lending the equivalent of 172 million Canadian Dollars to Greece.

This way, Greece can avoid a debt default after Iran has clarified the conditions in which it would export gas to the European Union.

Iran is seeking guaranteed payments, long term contracts and a ban on unilateral contract cancellations.

Analysts speculate that Iran's real intention is to punish the European Union after they decided to embark on an embargo against Teheran over its nuclear program.

Flickr photo by Honou.