Breaking through $3.10 at the speed of light! US gasoline prices accelerate upward, and the rally is expected to be difficult to halt in the coming weeks

On Tuesday Eastern Time, as the conflict in the Middle East intensifies, crude oil prices continue to soar. Gasoline prices at U.S. gas stations have risen significantly, climbing from about $2.90 per gallon to over $3.10 in just two days.

According to data from the American Automobile Association (AAA), the national average gas price increased by $0.10 in the past 24 hours, reaching nearly $3.11 per gallon.

Furthermore, as the conflict in the Middle East drives up oil prices, the increase has been passed on to retail gas stations, and prices are expected to rise further in the coming days.

“This will happen very soon,” Patrick De Haan, head of petroleum analysis at GasBuddy, said in an interview.

De Haan stated that the rise in oil prices is “intensifying” the demand for gasoline in the U.S., and it is expected that the national average price will increase by another $0.10 to $0.25 per gallon within the next week or two (depending on whether the conflict eases).

Additionally, most parts of the U.S. have recently started using cleaner but more expensive gasoline in preparation for the spring driving season.

De Haan said:

“Seasonal factors combined with U.S. strikes on Iran will definitely lead most drivers to believe that current gasoline prices will rise. This upward trend will not only continue over the next few days but could last for several weeks, or even two to three months.”

Energy prices may further increase

Due to soaring war risk insurance premiums and halted shipping activities through the Strait of Hormuz (a critical chokepoint for global oil transportation), oil prices have been pushed higher.

Several Wall Street strategists have warned that if the conflict persists longer, energy prices could rise further.

JPMorgan analysts stated on Monday: “If shipping through the Strait of Hormuz is restricted for 3 to 4 weeks, Brent crude oil prices could rise above $100 per barrel. About 20% of global oil transportation passes through this strait.”

As of press time, the international benchmark Brent crude futures price has risen to around $80 per barrel. Meanwhile, the U.S. benchmark WTI crude futures also continued their upward trend from the previous trading day, remaining above $76 per barrel.

(Source: Caixin)