• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick U.S. gas prices are likely to keep falling despite the Israel-Hamas war, analysts say
Editor's Pick

U.S. gas prices are likely to keep falling despite the Israel-Hamas war, analysts say

by October 14, 2023
by October 14, 2023 0 comment
Share
1
FacebookTwitterPinterestWhatsapp

Prices at the pump remain on track to keep falling in the United States despite the Israel-Hamas war, according to energy industry analysts.

After Hamas’ surprise attack over the weekend, global crude oil jumped to more than $87 a barrel by Monday, from below $83 late last week — roughly a 5% increase. Prices have since retreated, clocking in at $83.62 Wednesday morning.

But Israel and its immediate neighbors aren’t major energy producers, so as long as the conflict doesn’t expand geographically, seasonal trends should continue much as they have for the last few weeks, said Tom Kloza, global head of energy analysis at the Oil Price Information Service.

“On balance, we’re looking at gasoline prices dropping in all 50 states,” he said.

A gallon of regular gas cost $3.66 on average in the U.S. as of Wednesday, according to AAA, down from $3.83 a month ago. Prices at gas stations are falling as Americans wrap up their summer travel and as refineries switch to their winter fuel blend, which is cheaper and easier to produce.

In a note Monday, GasBuddy analyst Patrick De Haan described the initial spike in crude oil prices as a temporary “knee-jerk reaction,” adding that he sees a “very very low risk” of U.S. gas prices rising.

However, Kloza warned, “If you wake up and the theater of war has been expanded to Iran, that changes the calculus.” Tehran has long funded the military wing of Hamas, and U.S. officials are currently investigating whether Hamas fighters received any advance training from Iran’s Islamic Revolutionary Guard Corps.

The winter fuel mix is rolling out at a pace that should allow gas prices to continue falling through the next few weeks, Kloza said, estimating that prices at the pump could drop by as much as 2 cents a gallon each day. That would leave a gallon of regular costing an average $3.25 by Halloween.

The conflict has already affected the operations of producers of other types of energy, including natural gas.

Israeli officials this week ordered the shutdown of the Tamar offshore gas platform, a major Chevron-operated facility off the coast of Gaza. But analysts so far don’t foresee broader disruptions in global supplies, and natural gas prices have been dropping as well.

Most U.S. households are set to spend less to heat their homes this winter, the Energy Information Administration said Wednesday in its latest seasonal forecast, in part because this winter is expected to be warmer than last. The EIA projected the biggest price drops in natural gas costs — with consumer bills for the fuel set to shrink by 21% on average.

Still, crude oil prices on international commodities markets have been volatile lately as traders weighed the violence in the Middle East. That’s partly due to potential uncertainty around shipping routes through which oil produced elsewhere in the region gets to markets around the world.

“A wider conflict including Iran may impact the oil trade through the Strait of Hormuz, a channel Iran has previously threatened to shut,” Deutsche Bank analysts wrote on Tuesday.

Five of the top 10 largest oil producers — Kuwait, Saudi Arabia, Iran, Iraq and the United Arab Emirates — use that waterway, which connects the Persian Gulf to the Arabian Sea, to move about a fifth of the world’s crude oil supply, according EIA data.

But even if Iran were to choke off exports through the strait, the U.S. would have the capacity to lean on its own domestic production, analysts said. U.S. crude oil exports reached a record high in the first half of 2023, extending America’s lead as the largest oil producer in the world, a title it claimed in 2018.

“Oil hates turmoil,” De Haan said in his note, “but if the violence does not spill over into other areas, it should not worsen.”

This post appeared first on NBC NEWS
You Might Also Like
  • Home sale commissions are getting a shake-up this weekend
  • United Airlines expects busiest spring break ever despite travelers’ cost concerns
  • Payments app Zelle begins refunds for customers hurt by imposter scams
  • McDonald’s revenue disappoints, as U.S. sales see worst drop since pandemic
Share
1
FacebookTwitterPinterestWhatsapp

previous post
Caroline Ellison, star witness in Bankman-Fried trial, recounts living in ‘a constant state of dread’
next post
Lagging Indicators Confirm Bearish Phase For Growth

You may also like

Ticketmaster’s hidden fees remain common long after it vowed to...

October 26, 2023

Apple’s Maryland store workers vote to authorize strike

May 13, 2024

YouTuber Mr Beast sued by Mr Beast Burger food delivery...

August 9, 2023

Judge says he must still approve sale of Infowars to...

November 26, 2024

Boeing factory strike crosses 1-month mark as pressure mounts on...

October 15, 2024

Florida is booming and burning more trash. Residents say it’s...

October 30, 2023

Florida’s insurance industry faces upheaval amid Idalia cleanup

September 1, 2023

Philadelphia Fed President Patrick Harker advocates for interest rate cut...

August 23, 2024

GM cuts 50% of Cruise staff after ending robotaxi business

February 5, 2025

The Body Shop shuts down in the U.S. after filing...

March 13, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Spirit AeroSystems to furlough 700 workers...

    October 21, 2024

    First Republic bank says deposits tumbled...

    May 3, 2023

    Sports streaming venture from Fox, Disney...

    August 1, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here