Gas prices decrease despite rising oil prices caused by Hamas attack on Israel
Last week, the national average for a gallon of gas dropped by approximately 12 cents to $3.628, confounding expectations amidst the recent rise in oil prices due to the Hamas attack on Israel. Oil prices surged by around $5, reaching close to $90 per barrel. However, this increase had a negligible impact on gas prices as Israel and the Palestinian territories are not significant oil producers.
The decline in gas prices was more prominent in California, where prices plummeted by roughly 21 cents compared to the previous week. This drop can be attributed to a combination of decreased demand and the introduction of a cheaper winter blend of gasoline. California’s gas prices are generally higher than the national average due to several factors, including high local taxes, regulations necessitating a more environmentally friendly blend, and heavy reliance on local production or foreign imports.
Analysts are predicting that if there are no further geopolitical shocks, gas prices will continue to decline. By late November, there is the potential for a national average decrease ranging from 25 to 45 cents, with even greater reductions expected in California.
However, experts are keeping a close eye on the situation in the Middle East, particularly the Strait of Hormuz, as any disruptions to global oil supply could significantly impact gas prices worldwide. The recent Hamas attack is just one of many factors that could potentially impact oil prices in the future.
For now, consumers can look forward to further relief at the pump, as gas prices are expected to continue their downward trend. As we head into the winter season, where typically there is reduced demand, motorists can anticipate even more savings on their journeys. Keep an eye on ‘Poh Diaries’ for updates on gas prices, as well as other news impacting the everyday lives of our readers.
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