Congressional elections<\/a>.<\/p>\nAnd gas prices are already rising ahead of the summer driving season when people travel more. The national average for a gallon (conversion) of regular went up by more than 5 cents last week to $2.98, according to motoring club AAA. <\/p>\n
The price of crude has less impact in Europe, where taxes make up most of the price of fuel. But higher energy costs can affect prices across the economy. A sustained rise of $15 per barrel could add 0.5 percentage point to consumer prices in Europe, according to Holger Schmieding, chief economist at Berenberg bank. <\/p>\n
Monday\u2019s price increase was within the $5-$10 per barrel range expected by analysts based simply on the fear factor associated with the outbreak of war. And some war concerns were already reflected in the price before the conflict started.<\/p>\n
However, long-term disruption to ship traffic in the strait could send prices even higher, and so could damage to oil infrastructure in other Gulf countries. Meanwhile, a shorter conflict in which disruptions are easily reversible could mean the current price spike won\u2019t last. <\/p>\n
\u201cThe key question for the global economy is obvious: Will the Strait of Hormuz be effectively closed for oil and gas exports for more than a few weeks?\u201d Schmieding said. \u201cIf so, it would hurt global growth and raise global inflation noticeably. But I would expect Trump to go to great lengths to prevent a lasting surge in energy prices that could hurt him at home ahead of the U.S. midterm elections in November.\u201d<\/p>\n
He forecast oil prices would return to $65-$70 per barrel after a near-term spike. <\/p>\n
Iran\u2019s attack on the Ras Tanura refinery represents a major escalation, a Middle East analyst said, with Iran demonstrating that key Gulf energy infrastructure is within its reach, and investor sentiment likely to worsen.<\/p>\n
Torbjorn Soltvedt, principal Middle East analyst at risk intelligence company Verisk Maplecroft, said Iran’s goal is to raise the economic costs of the conflict for Gulf states like Saudi Arabia and the United Arab Emirates, hoping that these countries will pressure the U.S. and Israel to de\u2011escalate.<\/p>\n
He said that the coming days and weeks will be marked by uncertainty and volatility in global markets, with oil prices likely to push past $80 per barrel.<\/p>\n
\u201cIf we start to see additional direct attacks against energy infrastructure, not just in Saudi Arabia and Kuwait, but in other countries in the region, then that\u2019s when the market will start to think about a push toward $90 and perhaps even beyond.\u201d<\/p>\n
\u2014-<\/p>\n
AP writers Suzan Fraser in Ankara, Turkey, and Jon Gambrell in Dubai, United Arab Emirates, contributed. <\/p>\n<\/div>\n
\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"FRANKFURT, Germany — Oil prices rose sharply Monday as disruptions to tanker traffic through the Strait of Hormuz chokepoint raised uncertainty about how U.S. and […]<\/p>\n","protected":false},"author":1,"featured_media":341917,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[8999,1838,18894,19733,6925,9035,19735,6758,1030,19734],"class_list":["post-341914","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-chief-economist","tag-germany","tag-jon-gambrell","tag-oil-refinery-close","tag-oil-tanker","tag-persian-gulf","tag-ras-tanura-refinery","tag-satellite-tv","tag-turkey","tag-uk-maritime-commerce-operations-centre"],"_links":{"self":[{"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/posts\/341914","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/comments?post=341914"}],"version-history":[{"count":2,"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/posts\/341914\/revisions"}],"predecessor-version":[{"id":341916,"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/posts\/341914\/revisions\/341916"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/media\/341917"}],"wp:attachment":[{"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/media?parent=341914"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/categories?post=341914"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etrafficlane.com\/60dollarmiracle\/wp-json\/wp\/v2\/tags?post=341914"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}