"Experts believe that, even if tankers were free to transit the area, it could take months to clear the backlog, keeping prices high."
"JPMorgan's Joyce Chang and Natasha Kaneva wrote in a client note, 'To date, US retail gasoline prices have already increased to close to $4/gallon, but our commodity team sees a risk of that exceeding $5/gallon if the strait remains effectively closed by mid-April.'"
"For the average gallon of regular, gas prices are $5.92 in California, which is home to about 14% of Americans. It is also above $5 in Hawaii, Washington, and Nevada."
"The June 2022 CPI was 9.1% year over year. That is the highest it has been in decades. A look at the details shows that energy prices accounted for a large share of the increase."
Gas and oil price forecasts are increasing, with predictions of $150 crude oil becoming common. Current gas prices are nearing $4 per gallon, with risks of exceeding $5 if supply issues persist. Much crude supply is currently held up in tankers near the Strait of Hormuz, potentially prolonging high prices. In California, gas prices average $5.92, affecting 20% of the U.S. population. Energy prices significantly contributed to inflation, which is expected to follow a similar trajectory as in previous years.
Read at 24/7 Wall St.
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