Gasoline prices in the United States skyrocketed again, surpassing $4.50 per gallon nationwide, marking the highest level since July 2022. The increase comes amid energy tensions caused by the war with Iran and the prolonged shutdown of the Strait of Hormuz.
According to data from GasBuddy, the national average cost is now just 50 cents away from the all-time high recorded in June 2022, when the Russian invasion of Ukraine drove crude oil prices above $100 a barrel.
Likewise, the increase in fuel prices coincides with the arrival of the peak driving season in the United States, a period that traditionally raises the demand for gasoline and puts even more pressure on the market.
Middle East war is putting pressure on the energy market
Energy sector analysts believe that even if maritime traffic is restored soon, the market would need weeks or months to regain stability. The disruption is already impacting fuel inventories and creating uncertainty about summer supply.
Furthermore, the increase in the price of oil directly impacts refining costs and fuel distribution in the United States. This has led to daily price increases at gas stations in several states.
California leads the nation in the highest prices.
Among the hardest-hit states is California, where the average price of gasoline exceeds $6.10 per gallon. However, the cost also continues to rise in regions in the west and northeast of the country.
Since the start of the war with Iran on March 1, US consumers have spent approximately $23.9 billion additional fuel costs, according to estimates by Patrick De Haan, head of oil analysis at GasBuddy.
The rise in gasoline prices is already impacting sectors such as transport, logistics and tourism, especially with summer approaching and the expected increase in road trips.
Morgan Stanley warns of historically low inventories
Morgan Stanley warned that the U.S. gasoline market is experiencing significant strain. The firm projects that domestic fuel reserves could fall below 200 million barrels before the end of August.
At the end of April, gasoline stocks stood at 222.3 million barrels, the lowest level for this time of year since 2014 and 2% below the five-year average.
Analysts believe that the combination of high seasonal demand, supply disruptions, and low inventories could lead to further increases in gasoline prices in the coming weeks.
The market fears new all-time highs.
The current energy scenario revives fears of a new fuel crisis similar to the one that occurred in 2022. At that time, the war in Ukraine drove up international oil prices and pushed the national average for gasoline in the United States above $5 per gallon.
The market is now closely watching the unfolding conflict in the Middle East and any signs of a full reopening of the Strait of Hormuz. Meanwhile, consumers and businesses are facing a volatile energy environment and rising operating costs.
Source: OilPrice