Gas prices in the U.S. have been on the decline for weeks, and the latest conflict between Israel and Hamas is not likely to have a major impact on the prices, analysts say. Despite ongoing fighting, prices at the pump are expected to continue their downward trend for the foreseeable future.
Experts attribute the decreasing gas prices to several factors. The coronavirus pandemic and the associated economic downturn have drastically decreased the demand for fuel around the world. In addition, rising supplies of oil and gasoline have driven prices down even further.
As the conflict in Israel and Gaza continues to escalate, many people are wondering if and how it might affect the global oil market. However, according to experts, the crisis is unlikely to have a significant impact on the supply and prices of fuel in the U.S.
The U.S. Energy Information Administration (EIA) reported earlier this month that the average price for gasoline in the U.S. had dropped to its lowest point in more than six years. The EIA expects prices to remain low for the foreseeable future, with the average price per gallon expected to fall even further in the next few weeks.
Analysts say the current conflict between Israel and Hamas is unlikely to destabilize the global oil market as the two sides do not produce or export oil. The conflict is unlikely to directly affect U.S. gas prices, as the majority of the oil consumed in the U.S. comes from the Middle East and North Africa, well away from the conflict.
Furthermore, gas prices in the U.S. are also not affected by international events such as those taking place in Israel and Gaza as the majority are set by domestic factors, such as refining, transportation, and local market conditions.
While gas prices are expected to keep falling, analysts caution that they are still highly volatile and can be affected by any number of unforeseen global events. For this reason, it is important for consumers to stay informed and be mindful of any developments that could affect the price of gas.