Gas spikes on oil prices, global tensions
Rising geopolitical tensions and the highest crude oil prices since mid-February spiked gas prices this week.
AAA representatives said in a press release, “After Israel attacked Iran late last week, the price of crude immediately rose by almost $10 per barrel. Most of the cost of a gallon of gas is in direct correlation to the price of crude oil.”
Local crude oil purchasers American Refining Group and Ergon increased their offering per barrel by $9.61 from June 6 to June 13, including the most recent $4.94 increase.
“As it currently stands, these are the highest oil prices since mid-February,” AAA officials said.
“With the continuing conflict between Israel and Iran, a key point is what will happen in The Strait of Hormuz, located between Oman and Iran. It connects the Persian Gulf with the Gulf of Oman and the Arabian Sea. The strait is deep enough and wide enough to handle the world’s largest crude oil tankers, and it is one of the world’s most important oil chokepoints through which about 30% of global oil supplies move. So far, maritime traffic through the strait has not been blocked.”
Motorists around Bradford and Warren may be pleased this time around with their seeming insulation from gasoline price fluctuations — upward or downward — as these areas were spared the 16-cent increase seen throughout Western Pennsylvania.
Bradford’s average price per gallon increased 2.1 cents to $3.619, while Warren’s average cost actually decreased 3.2 cents to $3.664.
Points farther afield, like Brookville, DuBois and Erie, registered increases of 17.4, 15.8 and 16.8 cents per gallon, respectively. Drivers there could expect to pay $3.375, $3.385 and $3.277, respectively.
The spike seen across Western Pennsylvania brought the region’s average to $3.493 per gallon Monday, according to AAA East Central.
Prices jumped 9 cents statewide to $3.29 this week — 0.4 cents more than a month ago but still 34.7 cents less than a year ago, according to GasBuddy. The margin between the Keystone State’s least and most expensive gallons closed considerably — by 52 cents to $1.18. The state’s cheapest station was priced this week at $2.77 — up 8 cents — and its priciest at $3.95 — a decrease of 44 cents.
Prices also increased nationwide, albeit a smaller jump, from $3.07 to $3.08, according to GasBuddy. This week’s gasoline average is 9.5 cents lower than last month and 32.7 cents lower than last year. Diesel also increased this week, by 4 cents, to $3.488.
“With Israel and Iran trading attacks, oil prices have surged to multi-month highs — setting the stage for additional price hikes at gas pumps across the country,” said Patrick De Haan, head of petroleum analysis at GasBuddy. “As long as tensions in the Middle East continue to escalate, the risk of further impacts on oil prices remains high. For now, I expect gas prices could rise by 10 to 20 cents, while diesel could climb 15 to 25 cents in the coming days. Motorists should prepare for what will likely be modest price increases — for now — but the situation has the potential to worsen at any moment.”
Motorists can find current gas prices nationwide, statewide and countywide at gasprices.aaa.com.