Oil rises to $107 after Iraq pipeline attack

However, Wednesday's surprisingly sparse U.S. weekly oil inventory report from the U.S. Energy Information Administration, which revealed no build in inventories, and Thursday's Iraq incident have sent oil $7 higher in about two days, stopping-out many oil bears along the way, Dietz said. Dietz, currently a bull, added that he remains long with several monthly contracts in oil and unleaded gasoline, but he did close-out several other, profitable oil-long contracts earlier in the week.

Pain at U.S. gas pump

Further, oil's persistent above-$100 price will make it hard for refiners to provide some relief for U.S. motorists at the gas pump, Dietz said. Oil's stratospheric price keeps refiners' core commodity costs elevated, preventing them from passing on a 10-15 cent price cut that would have occurred had oil remained below $100, he said.

As a result, Dietz said U.S. gasoline prices, currently averaging about $3.25 per gallon nationally, are almost certain to rise 20-25 cents as the nation enters its driving season this spring. Motorists in some higher-cost regions, such as San Francisco, Los Angeles, and New York, may see a 30-40 cent jump, he said.