Gas prices continue to be a growing concern for many and there’s plenty of uncertainty about when relief might come. Patrick De Haan, Head of Petroleum Analysis for GasBuddy, says that uncertainty is felt by experts and analysts as well as the consumers themselves.
“Prices in New Orleans are down a couple of cents from a couple of weeks ago, but a lot of traders are watching what’s happening with President Trump visiting China. There could be some news that emerges out of that since China is maybe Iran’s biggest supporter,” De Haan explains.De Haan believes oil prices are currently lower based on speculation that, if any country can move the needle when it comes to the impasse in Iran, it is the mutual ally shared by the United States in China. “China is a huge consumer of Iran’s crude oil, so we’re talking billions of dollars at stake. If China were to get involved more heavily, it could certainly put more pressure on Iran when Iran’s economy is already having a difficult time,” De Haan went on to note.
China’s leader could have a heavy hand when it comes to re-opening the Strait of Hormuz, according to De Haan. However, he is certain that there will be some big asks involved, specifically when it comes to the sovereignty of Taiwan. This could lead to some delicate negotiations between the United States and China, let alone sorting out the differences remaining when it comes to Iran and the US.
“We’re all paying more at the pump the longer this goes on,” says De Haan. “Collectively, motorists have spent nearly $30 billion more in gasoline than where we were at the end of February. So, the misery index is going up,” he went on to add, warning that oil prices could continue to climb if no resolution is met. The current average for gas per gallon in greater New Orleans is hovering around $4 per gallon.
Prices in the greater New Orleans area are hovering around $4 per gallon
Prices in the greater New Orleans area are hovering around $4 per gallon
