Energy market analysts in the United States predict that due to ongoing tensions in the Middle East and damage to oil infrastructure, gasoline and diesel prices will soon face a significant increase.
Damage to Oil Infrastructure and Its Impact on Prices
The recent damage to the "East to West" oil pipeline in Saudi Arabia, which is the main land route for transporting oil to export terminals in the Red Sea, has raised concerns about broader disruptions in oil supply. This 745-mile (approximately 1200-kilometer) pipeline could have a significant impact on global oil prices and consequently, domestic prices in the United States.
According to reports, the damage to this pipeline due to drone attacks and other military tensions in the region could hinder the transfer of crude oil to refineries. These disruptions will be particularly evident in the Midwestern states and other key areas of the U.S.
Increase in Gasoline and Diesel Prices in the United States
According to the American Automobile Association, the average price of regular gasoline reached $4.44 per gallon on Thursday, while the price of diesel has increased to $6.40. In some states like California, the price of diesel has reached $8.35. This price increase has been particularly noticeable in states like Iowa, Wisconsin, and Michigan, where prices rose by 25 cents in just one night.
Market analysts predict that this upward trend will continue, and as a result of the crude oil shortage caused by the wars in the Middle East and Ukraine, American drivers may face new price shocks. Some experts believe that gasoline prices could reach $6.65 per gallon.
Additionally, disruptions in refining activities due to power outages and damages from the war will contribute to the escalation of prices. The Joliet refinery owned by ExxonMobil, recognized as the main supplier of gasoline and diesel for the region, has recently experienced disruptions due to technical issues.
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