"Widely followed WTI crude oil futures have surged from $72 per barrel at the start of last week to $108 per barrel tonight. That's especially notable because they closed at $90.90 on Friday. The big picture for consumers: pain at the pump is about to get extreme in the coming weeks."
"The primary driver is the Iran conflict and the threat to supply flowing through the Strait of Hormuz, one of the world's most critical oil chokepoints. Oil futures don't begin trading until 6 p.m. ET on Sunday. When they opened tonight, they were up 18%. WTI Futures now trade for about $108 per barrel."
"The all-time record national average gas price, per AAA, is $5.02 per gallon, set on June 14, 2022. If oil prices hold near current levels, that record is squarely in the crosshairs. California is already showing us what's coming: the state average has hit $5.159 per gallon."
Oil futures experienced a dramatic 18% surge, jumping from $90.90 on Friday to $108 per barrel following geopolitical tensions in Iran and threats to oil supply through the Strait of Hormuz. The national average gas price currently stands at $3.45 per gallon, already up 16% over the past week. If current oil price levels persist, gas prices could reach historic highs, potentially exceeding the previous record of $5.02 per gallon set in June 2022. California already demonstrates this trajectory with prices hitting $5.159 per gallon. The lag between financial markets and consumer pump prices means significant increases are expected in coming weeks.
Read at 24/7 Wall St.
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