Israel-Hamas war spikes oil prices, brings uncertainty for US gas pumps

WITH A WAR OFFICIALLY UNDERWAY IN THE MIDDLE EAST –

THE WORLD IS NOT FAR REMOVED FROM ITS REACH.

WITH MANY NATIONS INCLUDING THE U.S. RELIANT ON THE OIL-RICH REGION –

ECONOMIC IMPACTS COULD BE COMING.

EYES TURN TO THE MARKETS –

AS THE TURMOIL INITIALLY SENT OIL PRICES SOARING.

BUT THAT COULD CHANGE DEPENDING ON THE DIRECTION THE WAR GOES IN THE COMING DAYS.

TAKE A LISTEN TO OPEC’S CHIEF CORRESPONDENT.

Amena Bakr | Chief OPEC Correspondent and Deputy Bureau Chief at Energy Intelligence

“Any geopolitical tension especially here in the middle east where most of the production of the world comes from, if you see any tension in this region, you see an immediate increase in the price of oil.  the threat that any of this conflict has on supply of course means a volatile environment and possibly higher price.”

THOUGH PALESTINE AND ISRAEL ARE NOT CONSIDERED MAJOR PRODUCERS OF OIL –

 THE WAR IS HAPPENING IN A REGION KNOWN FOR LEADING THE WORLD IN OIL PRODUCTION. 

WITH SAUDI ARABIA, THE SECOND WORLD LEADER OF OIL PRODUCTION, NEAR TO THE FIGHTING –

THE CONCERN IS – AS THE WAR ESCALATES –

 IT WILL IMPACT THE MIDDLE EASTERN OIL SUPPLY.

IN TURN – AFFECTING PRICES AT THE PUMP.

ACCORDING TO A USA TODAY REPORT –

DESPITE THE FIGHTING BETWEEN ISRAEL AND HAMAS, GAS PRICES IN THE U.S. COULD CONTINUE TO DROP FOR THE NEXT FEW WEEKS. 

PATRICK DE HAAN IS A PETROLEUM ANALYST FOR GAS-BUDDY – A GAS PRICE TRACKING SITE.

BEFORE WAR BROKE OUT – HE SAID ON TWITTER THAT THE AVERAGE PRICE AT THE PUMP IS DOWN TO THREE-DOLLARS AND SEVENTY-TWO CENTS PER GALLON –

AND HE EXPECTED THAT NUMBER TO CONTINUE TO DROP IN OCTOBER.

ON MONDAY DE HAAN SAID HE IS STILL CAUTIOUSLY HOPEFUL GAS PRICES WILL CONTINUE TO DROP DESPITE THE NEWLY DECLARED WAR.

QUOTE: “EVEN WITH OIL PRICES RISING AS A REACTION TO THE ATTACKS, I REMAIN OPTIMISTIC THE NATIONAL AVERAGE COULD DECLINE ANOTHER TWENTY-FIVE TO FORTY-FIVE CENTS BY LATE NOVEMBER, WITH PRICES POTENTIALLY FALLING NEARLY TRIPLE THAT IN CALIFORNIA.”

AFTER THE ATTACKS THE PRICE OF CRUDE OIL JUMPED.. BUT A GASBUDDY ANALYSIS INDICATES THIS COULD BE A KNEE-JERK REACTION THAT WON’T BE SUSTAINED UNLESS FIGHTING SPREADS TO MAJOR OIL PRODUCING COUNTRIES.

THE WALL STREET JOURNAL ON SUNDAY CITED SENIOR MEMBERS OF HEZBOLLAH AND THE PALESTINIAN TERRORIST GROUP HAMAS WHO CLAIM IRAN, A MAJOR PRODUCER OF OIL, HELPED HAMAS PLAN THE ATTACK ON ISRAEL.. 

BUT ON MONDAY IRANIAN OFFICIALS DENIED ANY INVOLVEMENT IN THE ATTACKS.

THE REPORTS, IF TRUE – COULD LEAD TO A BROADER CONFLICT… DE HAAN SAID

THAT IF THE FIGHTING DOES SPILL INTO IRAN IT COULD LEAD TO THE COST OF CRUDE OIL JUMPING MORE SIGNIFICANTLY… GOLDMAN SACHS SAID IRANIAN OIL PRODUCTION COULD FALL WITH THE POTENTIAL FOR FURTHER SANCTIONS ON IRAN.

ON SUNDAY, PRESIDENT BIDEN CONDEMNED THE MOST DEVASTATING ATTACK ON ISRAEL IN DECADES AND ANNOUNCED THE U.S. IS SENDING MILITARY RESOURCES TO ISRAEL INCLUDING SHIPS AND AIRCRAFTS LIKE THE U-S-S GERALD R. FORD CARRIER STRIKE GROUP.