• 4 minutes Is The Three Gorges Dam on the Brink of Collapse?
  • 8 minutes The Coal Industry May Never Recover From The Pandemic
  • 11 minutes China Raids Bank and Investor Accounts
  • 9 hours Biden admits he has been tested for Cognitive Decline several times. Didn't show any proof of test results.
  • 36 mins Putin Forever: Russians Given Money As Vote That Could Extend Putin's Rule Draws To A Close
  • 11 mins During March, April, May the states with the highest infections/deaths were NY, NJ, Ma. . . . . Today (June) the three have the best numbers. How ? Herd immunity ?
  • 11 hours Apology Accepted!
  • 3 hours Tesla Model 3 police cars pay for themselves faster than expected, says police chief
  • 14 hours U.S. natural gas at major disadvantage in Europe and China.
  • 15 hours Biden came out of his basement today (Thursday) and said , "we have 120 Million deaths from Covid 19.
  • 2 hours Why Oil could hit $100
  • 3 hours The Political Genius of Donald Trump
  • 15 hours Putin Paid Militants to Kill US Troops
  • 20 hours CoVid in Spain, 9 months before China
  • 20 hours Per most popular Indian websites it was Indian troops not Chinese troops breach of LAC that caused the clashes. If you know any Indian media that claim to the contrary please provide the link
  • 20 hours The world is headed for big problems - interview with very smart economist

Breaking News:

OPEC Production Falls To Three Decade Low

Oil Prices Remain Excessively Vulnerable To Shocks

Oil Prices Remain Excessively Vulnerable To Shocks

Oil markets remain highly fickle,…

Barclays Expects Higher Oil Prices But Slow Recovery

Barclays Expects Higher Oil Prices But Slow Recovery

Barclays raised its oil price…

WTI Jumps To $40 On Demand Recovery

WTI Jumps To $40 On Demand Recovery

The U.S. benchmark WTI Crude…

ZeroHedge

ZeroHedge

The leading economics blog online covering financial issues, geopolitics and trading.

More Info

Premium Content

Gas Price Jump Imminent Following Saudi Attacks

The attack on a Saudi Arabia oil facility, now being blamed on Iran, that caused crude oil futures to spike more than 10% to start the week is likely going to start hitting consumers at the pump over the next couple of days, according to Bloomberg.

Despite retail gasoline futures jumping as much as 20 cents on the New York Mercantile Exchange early in the week, the average US retail gasoline gallon rose just 1 cent since Sunday. But the impact of futures rising will become more pronounced over the next day or two, according to Patrick DeHaan, senior petroleum analyst at GasBuddy.

The shift in prices at the pump will come after gasoline distributors adjust their prices to match gains in futures and regional spot markets, he says.

An increase of about 15 cents to 30 cents per gallon in the United States is going to be likely over the next several days while Saudi Arabia works to get production back up to speed.

Source: Bloomberg

Despite the huge move higher at the beginning of the week, where crude futures ran through the $63 mark, they have since pared gains and are trading at around $59 late in the day on Tuesday - still about 10% higher than prior to the weekend. Related: Is A Full-Blown War In The Persian Gulf Inevitable?

Source: Bloomberg

President Trump also said on Tuesday that it wasn’t going to be necessary to release oil from the Nation's Strategic Reserves:

“I don’t think we need to. Oil has not gone up very much,” Trump told reporters Tuesday aboard Air Force One as he traveled to California for a series of fundraisers. “There’s a lot of oil in the world.”

As Trump is likely well aware, any type of prolonged increase in gas prices could keep low and middle income voters from the polls during election time, according to Kevin Book, managing director of ClearView Energy Partners in Washington.

Book continued: “No voter has ever been happy about a price increase. They might not vote for the other party, but they might not get off the couch if they are pissed off.”

The potential for rising gas prices comes at a time during the year when winter grade gasoline, which is cheaper to make, usually sends prices lower. AAA had predicted $2 dollar gasoline in the US South this fall, where it is generally cheapest in the nation. 

DeHaan concluded: “Right now you are seeing the stations rushing to get those tanks full. And those who are not able to fill up will be confronted with having to pay extra later.”

By Zerohedge.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News