Buffalo, N.Y. (WBEN) - As the war in Iran hits a stalemate without a clear end to the blockade of the Strait of Hormuz in sight, one expert warns prices can blow up even further, possibly to $5/gallon or more.
"We've been at this now for 8 weeks, 61 days, and to hear the President say 'Well, we're gonna keep on going' is certainly very troublesome from an oil supply market."
It's a market that Patrick De Haan, Head Petroleum Analyst at GasBuddy, says reacts to anything. He compares it to choosing your clothes in the morning based on the weather.
"Oil prices are pricing in every bit of information. And they are having to assess the risks: do I buy today at this price? Are the conditions ripe for lower prices? Or, do I think the news of the day is going to send oil prices higher."
De Haan says it's difficult to know where prices will head, but if the Strait stays closed the increase may be extreme.
"We'll head to $4.50. $5 isn't impossible. Beyond $5 isn't impossible. Right now it's maybe a little less probable."
Gas prices in Buffalo rose 25 cents since last Monday to $4.41/gallon according to AAA. That increase was even higher across the country, with prices jumping 35 cents to $4.46/gallon.
Patrick De Haan says there's an outside chance prices may exceed $5 if nothing changes in the Middle East
Patrick De Haan says there's an outside chance prices may exceed $5 if nothing changes in the Middle East
