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By Jeffrey Bair and Ari Natter sure 09/17/2019
HOUSTON (Bloomberg) – The attack on an oil rig in Saudi Arabia that caused a surge in futures prices Monday is likely to begin filtering to gas stations later this week, according to price tracking GasBuddy.
The average retail gasoline in the US has only gone up by a cent per gallon since Sunday, even as New York Mercantile Exchange futures jumped 20 cents as a result of drone strikes on Saudi oil production.
The impact at the pump should begin to intensify Tuesday or Wednesday, according to Patrick DeHaan, senior oil analyst at GasBuddy. This is after gasoline distributors have adjusted their prices to match the gains of the futures and regional spot markets.
He said that an increase of 15 to 30 cents per gallon of the average price at the pump in the United States would be likely during repairs in Saudi Arabia.
The US crude at $ 70 a barrel would likely be followed by a 3-gallon gasoline pump, said Jeanette Casselano, a spokeswoman for the AAA auto club. WTI futures were trading between $ 62 and $ 63 a barrel early Monday afternoon.
Rising fuel prices are a political risk for President Donald Trump, who has authorized the release of oil from the country's strategic reserve, so that the market remains well supplied.
Prolonged price increases could lead low- and middle-income voters, especially in the red states, to stay home after the election, said Kevin Book, chief executive of ClearView Energy Partners in Washington.
"No elector has ever been happy about a price increase," said Book in a phone interview. "They might not vote for the other party, but they might not leave the couch if they were upset."
The rise occurs at a time of year when prices generally fall during the transition to winter gasoline, which is less expensive to manufacture. AAA had earlier predicted a $ 2 gasoline from the United States of America this fall; The cheapest states for gasoline, Mississippi and Louisiana, were about $ 2.20 per gallon on Monday, the agency said.
"Right now, you see the stations hurrying to fill their tanks. And those who can not refuel will be faced with having to pay extra later on, "said DeHaan.
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