Gas Prices Hit $4.46 as Supply Disruptions Continue
The national average price for regular unleaded gasoline reached $4.46 per gallon on Friday. Overnight spikes of 25 cents in the Midwest signal further increases are likely.
The national average price for regular unleaded gasoline reached $4.46 per gallon on Friday. This figure remains below the record high of $5.01 set in June 2022. However, overnight increases of 25 cents per gallon were recorded in the Midwest. Analysts expect prices to rise further in the coming weeks.
The U.S.-led conflict with Iran has disrupted global oil trade since February. Recent attacks on a major Saudi Arabian pipeline threaten to remove significant volume from the market. The Strait of Hormuz has been effectively closed since the initial strikes in February. These disruptions account for a substantial portion of the current price surge.
Supply Losses Reduce Global Oil Availability
Rystad Energy estimates that 2.6 million to 4 million barrels per day moved through the affected pipeline. This volume exited the Red Sea port of Yanbu since late August. The International Energy Agency notes that 4 million barrels per day represents 4% of global oil supply. The market is already adjusting to a significant loss of supply.
Roughly one-fifth of the world’s oil supply previously passed through the Strait of Hormuz. Iran closed the waterway in response to U.S. and Israeli attacks. The closure continues to exert pressure on global energy markets. Experts warn that the effects of the pipeline attack could last for weeks.
Political Impact on November Midterm Elections
President Donald Trump described high gas prices as a very inexpensive price to pay. He made this statement during a rally in North Carolina. He predicted that prices would drop rapidly after the current conflict ends. His optimism contrasts with recent polling data regarding voter sentiment.
A Fox News poll indicates that affordability is the top concern for voters. Most respondents believe the President has worsened the economy. This sentiment could benefit Democrats in the November midterm elections. Voters will decide control of the House and Senate based on these economic factors.
Market Data Tracks Rising Diesel Costs
GN auto markets/energy data confirms the upward trend in fuel costs. The national average for diesel reached an all-time high of $5.85 per gallon. This increase aligns with the broader disruption in the oil supply chain. The data reflects the immediate impact of geopolitical events on consumer prices.
