Results for: Oil market

A California gas station in Menlo Park made headlines for charging $7.29 per gallon for regular unleaded, sparking attention online. However, this price appears to be an outlier, with other nearby stations averaging around $5.50 per gallon. California remains the only state with an average gas price above $5 per gallon, currently at $5.41 per gallon, significantly higher than the national average of $3.66 per gallon. The high prices are attributed to various factors, including the ongoing conflicts in the Middle East and Ukraine. Experts predict price fluctuations in the coming weeks due to seasonal demand and international events.

Energy stocks are expected to see a decline as the opening bell approaches on Wednesday, with analysts noting that geopolitical tensions continue to weigh on the market. Commerzbank analysts have observed that the risk premium will likely remain elevated due to these ongoing concerns.

With recent missile attacks by Israel on nuclear and military sites in Iran, there are concerns about further escalation and its potential impact on the global oil market. Israel’s actions may trigger a response from Iran, potentially targeting Saudi Arabia’s oil facilities or disrupting shipping in the Red Sea. This could lead to a surge in energy prices, which the US and China, key sponsors of Israel and Iran, respectively, strongly oppose. The US has indicated that it will not support Israeli actions that could significantly increase oil prices, while China is mindful of the economic risks of prolonged high oil prices. However, Israel may consider further attacks on Iran’s nuclear facilities to delay its path to nuclear weapons development, which the US might not publicly support but tacitly tolerate. Iran, in retaliation, could escalate attacks on Saudi Arabia through the Houthis, potentially affecting global oil supply and prices.