Tanker Attacks Shouldn’t Affect Gas Prices

Written by on June 14, 2019

Attacks on two oil tankers in the middle east have economists concerned about a rise in oil prices.

However, Patrick DeHaan, head of petroleum analysis for the website Gasbuddy.com, says the attacks are not likely to impact gas prices.

DeHaan points out that the scope of the situation is small. However, the idea of attacks and perhaps further attacks are what concern economists, and are the reason why oil prices were up yesterday morning. He says the amount of oil is a tiny fraction of global daily demand, but the situation raises risk of another situation or attack in the future, and that’s propelling energy markets.

DeHaan says that although motorists are worried the attacks will raise U.S. gas prices, that outcome is highly unlikely. While oil prices are up some $2 per barrel this week, they still remain $13 per barrel lower than 2019’s high water mark. Gasoline supply has not changed, and yesterday’s rise in wholesale gasoline prices will be offset by previous weeks of heavy losses.

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