ENER Price of Gas to Shoot to $7/gal in Near Future?

[Bridey Rose]

This Is Why The Price Of Gasoline Could Soon Double…​

Michael Snyder
Apr 15, 2024

Can you imagine paying seven dollars for a gallon of gasoline? It could soon happen, because it appears that Israel is about to strike Iran, and that is likely to cause events in the Middle East to spiral completely out of control. Right now, approximately one-fifth of all oil used in the world goes through the Strait of Hormuz. An apocalyptic war in the region could potentially close the Strait of Hormuz until the conflict is resolved one way or the other. In addition, oil infrastructure could be destroyed in Iran and other nations in the Middle East as the fighting rages, and that could substantially reduce global oil production for an extended period of time. Our way of life depends on cheap oil, and so if a major regional war in the Middle East causes the price of oil to go skyrocketing that is going to deeply affect all of us.

On Monday, the average price of a gallon of gasoline in the United States was just $3.63…

The average price for a gallon of regular gas in the U.S. was $3.63 as of Monday, according to AAA, up almost 4 cents from a week earlier and 22 cents from a month ago.

Even though the average price of a gallon of gasoline has risen more than 20 cents in a month, I would still consider it to be at a very low level, especially compared to what is eventually coming.

One expert that was interviewed by MarketWatch is warning that the average price of a gallon of gasoline in the U.S. could hit $5.40 this summer…

Colas estimated that a spike in oil prices pushing U.S. gasoline to $5.40 a gallon this summer would make a recession later in 2024 “a genuine possibility.” U.S. gas prices averaged $3.634 a gallon at the pump on Monday, according to AAA, at last check.

And that same expert also warned that if the price of oil reaches $125 a barrel it could push the U.S. economy into a recession…
“Crude prices are our chief concern, but we are a long way” from $125 a barrel — a level of West Texas Intermediate oil that “would almost certainly cause a recession if sustained,” said Colas. “Gasoline prices are the transmission mechanism between Mideast conflict and the US economy: when pump prices increase quickly, consumers must cut back on other spending.”

Personally, I think that such a projection is wildly optimistic.

If Israel and Iran start lobbing thousands of missiles at one another, we could easily see the price of oil surpass $150 a barrel, and it is likely that the average price of gasoline in the U.S. would shoot past $7.00 a gallon.

And if nuclear weapons are used in the Middle East, there is no telling what might happen.

Right now, the financial markets are waiting to see if Israel chooses to retaliate.

If the Israelis strike Iran, and oil infrastructure is targeted, that will definitely “send oil prices up”…

If Israel does retaliate, and it becomes a full-fledged conflict, that’s a different story. “And maybe Iran’s oil platforms, refineries are taken out,” he said. “That would send oil prices up.”

I think that is what is going to happen.

At this moment, it is being reported that Israel is preparing to retaliate.

When that occurs, the price of oil will go nuts, and people all over the U.S. will blame Israel for the high price of gasoline.

But instead, they should blame Hamas, Hezbollah and Iran.

If they would have just left Israel alone, things could have turned out much differently.

Iran could have lived in peace. The Iranians are one of the largest producers of oil in the world, and during the Biden administration they have been able to dramatically increase oil exports…

Iran has steeply raised oil exports, its main source of revenue, during the Biden administration after they were severely reduced due to measures taken by the Trump administration.
The White House has argued it isn’t encouraging Iran to raise exports and is enforcing sanctions. Lower Iranian exports would lead to a further rise in oil prices and the cost of gasoline in the U.S., which would be a politically sensitive issue ahead of this fall’s presidential elections.

Instead of using their oil money to fund terror organizations, the Iranians could have lived in luxury.

To be honest, Iran could have been one of the most prosperous countries on the entire planet.

But instead they have foolishly chosen a much different path.

If an all-out war between Israel and Iran erupts, it is probably inevitable that the Strait of Hormuz will be closed, and that will be catastrophic for the entire global economy…

Potential impacts on the shipping transiting through the Strait of Hormuz, a chokepoint for about one-fifth of the world’s total oil consumption, will also factor into markets’ pricing.
The commander of Iran’s Revolutionary Guard’s navy said on Tuesday that Iran could close the strait if deemed necessary, and earlier on Saturday Iran’s state-run IRNA news agency said an IRGC helicopter boarded a vessel, the Portuguese-flagged MSC Aries, and took it into Iranian waters.

Just think about that.

One-fifth of all the oil the world uses goes through the Strait of Hormuz.

We are in uncharted territory, and we could soon see a level of panic in the financial marketplace that we haven’t seen in a very long time.

Meanwhile, economic conditions in the U.S. just continue to deteriorate.

Earlier today, I was saddened to learn that even Tesla has decided that mass layoffs have become necessary…

Tesla has announced layoffs of “more than 10%” of its global workforce in an internal company-wide email. We exclusively reported yesterday that Tesla was prepping a massive layoff.
For the last few months, it has looked like Tesla might be preparing for a round of layoffs. Tesla told managers to identify critical team members, and paused some stock rewards while canceling some employees’ annual reviews. It also reduced production at Gigafactory Shanghai.

Things are definitely not good now, but they will get a whole lot worse if a major regional war does erupt in the Middle East.

It takes energy to make products, transport products and sell products.

The price of oil has an enormous impact on literally every sector of our entire economy.

If an apocalyptic war in the Middle East were to cause the price of oil to double, it would send us into a horrific economic tailspin.

So let’s hope for the best, but let’s also prepare for the worst.

This Is Why the Price of Gasoline Could Soon Double...

 

[Housecarl]

It's pushing $6/gal in CA right now.

 

[blueinterceptor]

In pa I’m seeing 3.75 a gallon. Up about .35 cents from just 3 weeks ago. And yet in NYC gasoline was 3.35 a gallon for regular unleaded. NYC had suspended its gas tax during Covid I wonder if its still suspended?

 

[West]

I muse, $10 gas will soon be a good deal. If you can find any.

Our FIAT crap is now literally turning to crap. We just paid about $36 for toilet paper, granted it was the big 36 roll bag, but the cheap Scott brand.

Thinking a roll of TP in the future is going to be worth more than a $20 fiat bill. Or a $20 hamburger. And $20 hamburgers are here now!

 

[Melodi]

I've posted before how to live on 10 dollars (or even 7 dollars) a gallon of gasoline. I grew up partly in rural California, and the distances we drive here in rural Ireland for The Doctor, Shopping, etc, are about the same as when I was a child in the US.

What happens is simple: people stop going anywhere they don't have to be. We combine trips to the shops and the feed store, so we only go at most once a week or, on a good month, twice a month. We decide what if any, extra trips we can make and set aside some money for unexpected but required trips (such as a sudden medical appointment).

Many more people show up at the petrol (gas) station with cans to fill up five or ten gallons worth (even when it is technically illegal to carry it in the back seat or the trunk). There is a significant increase in our village of older teens and adults hitching rides into town to get to work or other things (like shopping or medical appointments).

It isn't easy, it isn't fun, and, yes, some people lose their jobs because they can't afford to drive to work anymore. We've been through several cycles of this since we moved here nearly 30 years ago, and it never gets any easier. But there are ways to cope. Simply saying it isn't workable doesn't do much good when it happens anyway.

 

[Cyclonemom]

It was a nice country we had, once.

Sigh.

Time to to a thorough look over of what we have and where it is.

 

[CaryC]

On Monday, the average price of a gallon of gasoline in the United States was just $3.63…

In Tupelo Friday it was 2.79 at walmart. But still who wants to voluntarily pay over 5.00 a gallon.

 

[PghPanther]

"Now stretch for the pump when the price is set.....price is set" - Testify / Rage Against the Machine

 

[Dobbin]

We just had major wind damage here in Seacoast Cow Hampshire. The power went out a week ago Thursday and was out for Owner for 5 days. '

He had my LED lantern available which served as a sort of "back-up" for me. Meanwhile, the laptop battery ran down and I was out of commission most of a weekend ago.

But Owner used his generator to keep the water flowing (well pump) and the refrigerator cold and the freezer frozen.

Running the generator takes about 5 gallons per day - its not terribly efficient. So in 5 days he used 20 gallons of gasoline. He has a stock of about 30 gallons in 5 gallon containers.

His wife's Prius gets about 50 mpg. So that 30 gallons becomes 1500 miles.

But of course once its gone for whatever reason - its rubber tired wagon time.

As Owner says "You're all going to have to get used to living in 1910."

Dobbin

 

[jward]

well look on the bright side, they can all get part time second gigs at the fast food restaurants makin' 20+ an hour, to pay for the exorbitant fuel prices eh
:: tries to decide whether the eye roll or head banging brick wall is the most appropriate emoji ::

 

[Betty_Rose]

We just had major wind damage here in Seacoast Cow Hampshire. The power went out a week ago Thursday and was out for Owner for 5 days. '

He had my LED lantern available which served as a sort of "back-up" for me. Meanwhile, the laptop battery ran down and I was out of commission most of a weekend ago.

But Owner used his generator to keep the water flowing (well pump) and the refrigerator cold and the freezer frozen.

Running the generator takes about 5 gallons per day - its not terribly efficient. So in 5 days he used 20 gallons of gasoline. He has a stock of about 30 gallons in 5 gallon containers.

His wife's Prius gets about 50 mpg. So that 30 gallons becomes 1500 miles.

But of course once its gone for whatever reason - its rubber tired wagon time.

As Owner says "You're all going to have to get used to living in 1910."

Dobbin

My husband just bought a new RAv4 hybrid that gets 45+ mpg (purchased at my recommendation).

This is a good time to have a fuel-efficient car.

I don’t think our economy can survive $7 a gallon gasoline.

 

[CaryC]

My husband just bought a new RAv4 hybrid that gets 45+ mpg (purchased at my recommendation).

This is a good time to have a fuel-efficient car.

I don’t think our economy can survive $7 a gallon gasoline.

Last year when we got our Rav4 they had one sitting in the showroom. Beautiful car, and beautiful price. Just couldn't do the price. I think some others couldn't either LOL A couple of months later it was still sitting there.

That's not to say you didn't make a good choice.

 

[bracketquant]

My guess is that it'll be listed and sold at $2.00/liter (shrinkflation), when it goes to $7 - 8/gallon.

 

[ShadowMan]

Gathering up information on: Alcohol Fuel producing, Hydrogen Fuel Producing, Wood Vapor Fuel Producing.....and last but not least, DIY Electric Car (I ABSOLUTELY refuse to buy a Tesla or anything like that....I'll build my own!)

 

[GWN_guy]

DIY Electric Car (I ABSOLUTELY refuse to buy a Tesla or anything like that....I'll build my own!)

please post your findings when you are done... interested in seeing what you find and why that makes more sense than continuing with ICE

 

[Wyominglarry]

$7 a gallon will kill what is remaining of our economy.

 

[Lone Eagle Woman]

Saw on the West Coast last summer in Washington State gas prices already at $6 a gallon but people still were driving. People love their cars and driving and if this happens, it would kill the Democrats and their environmental climate change dreams do think. Already many people are suffering with the gas prices as is.

 

[Lee2]

It's going to be one hot summer! Price for air conditioning and power will be up too. And groceries - wow! I should do an assessment of what we need now and stock up. So much for a summer trip.

 

[Tristan]

$7 a gallon will kill what is remaining of our economy.

So it fits right into the plan...

 

[Terrwyn]

It's going to be one hot summer! Price for air conditioning and power will be up too. And groceries - wow! I should do an assessment of what we need now and stock up. So much for a summer trip.

That's not the only thing that's up. Crime in my area especially theft and burglaries are way up. Everyday now I'm seeing crime reports within a mile or 2 of my house.

 

[prudentwatcher]

Gas prices in North Central Florida on Sunday--$3.35 gal. Price today (Tuesday)-$3.69 gal.

 

[Old Greek]

Gathering up information on: Alcohol Fuel producing, Hydrogen Fuel Producing, Wood Vapor Fuel Producing.....and last but not least, DIY Electric Car (I ABSOLUTELY refuse to buy a Tesla or anything like that....I'll build my own!)

Also consider compressed natural gas - if available. My home compressor fills my CNG F250 for $1.25 cents a gallon.

 

[Griz3752]

Mid town Memphis today:
Regular 3.30-3.55
Premium 4.20-4.85
Averaged across 3 retailers

# diesel is .20± over Premium


A far cry from the prices we saw in 2016-2020.
Considering "Green EVs at ANY Cost" courtesy FJB&Co, I think 5.00/gal Regular will be here sooner than later.

Only my opinion & limited to my locale.

 

[Wyominglarry]

I filled up on Sunday. Casper, Wyoming $2.94 for 85 regular unleaded.

 

[Johnny Twoguns]

Naw, more like $11 a gallon (higher in Cali of course).

Yet, from what I've seen, a goodly number just can't wait for the US and Israel to attack Iran.

Oh well, so it goes.

 

[Dennis Olson]

It's pushing $6/gal in CA right now.

from earlier in the Biden “administration”:

 

[Publius]

For many years now they have been telling us the only country buying their crude is china and Russia does not need it as they have their own supply so how does this affect crude oil prices for the rest of the world?

 

[PghPanther]

My husband just bought a new RAv4 hybrid that gets 45+ mpg (purchased at my recommendation).

This is a good time to have a fuel-efficient car.

I don’t think our economy can survive $7 a gallon gasoline.

It the cost of fuel for transportation of goods and foods within a national distribution network that would garner my attention at those prices....

 

[Intestinal Fortitude]

Better get locking gas/fuel caps

 

[changed]

The Israelis will take out the drone factory and maybe a nuke site or two.

 

[Hermantribe]

Naw, more like $11 a gallon (higher in Cali of course).

Yet, from what I've seen, a goodly number just can't wait for the US and Israel to attack Iran.

Oh well, so it goes.

Perry close to that now- in Death Valley. Course, they can charge whatever they want. It’s that or stay there

 

[West]

I recall in 1983 or about a gas station near the forks of the Salmon River in Siskiyou County California, charged $5 a gallon IIRC.

Closest gas station was over 75 + miles of steep grades and hair pin curves. The old Ford truck needed almost a full tank to get out of there, after we burned threw our supplies of gas on the 6 inch dredge we was running on our claim.

$7 bucks that's cheap considering the arsehats we have keeping us from cheap gas. And today's mandated inflation.

 

[Firebird]

Paid $4.00 for mid grade today

 

[herbgarden]

Publius.... They lied.

 

[subnet]

My husband just bought a new RAv4 hybrid that gets 45+ mpg (purchased at my recommendation).

This is a good time to have a fuel-efficient car.

I don’t think our economy can survive $7 a gallon gasoline.

They said it wouldnt at 4 or 5 a gallon during the 0bama admin ...look at us now.
They will continue to push it up, then back off a bit, then up higher than the last time ect..
Until they get the desired result

 

[Codeno]

It's pushing $6/gal in CA right now.

My daughter is in Lake Tahoe for the week, and sent a text day before yesterday that said she had paid $6.59 per gallon there. Sure, it's Tahoe, but still...

 

[cwr]

Got a Prius a couple of years ago then they sent me home to work. Only 4,000 miles on it. Seriously. We don’t go any where. The gas mileage is awesome. 50 per mile.

 

[Great Northwet]

Got the first oil change today on the 2017 Escape that I bought 6 months ago. I've driven it a whole 2k miles since then. The guy said the oil was pretty dark, but full. Transmission also full. Needs a new air filter but I can do that without tools.

 

[Doc1]

I just dropped $90 this afternoon filling my '68 Ford truck and four 5 gallon gas cans @ $3.59/gallon for ethanol-free regular. If memory serves, regular unleaded was $3.09/gallon. This is in southern Mississippi where gas prices are usually low...especially compared to the blue states.

Best
Doc

 

[West]

I just dropped $90 this afternoon filling my '68 Ford truck and four 5 gallon gas cans @ $3.59/gallon for ethanol-free regular. If memory serves, regular unleaded was $3.09/gallon. This is in southern Mississippi where gas prices are usually low...especially compared to the blue states.

Best
Doc

I had to fabricate a metal funnel so I could much easily and faster put gas from my 5 gallon gas cans into my 1976 beast.