As tensions continue to rise between Hamas militants and Israel, U.S. gas prices are still likely to remain low in the near future, while prices for other fuels, such as diesel, can be expected to be relatively stable.
Analysts say the current situation between Israel and Hamas has had a minimal impact on the global gasoline market, and has had no effect on U.S. gas prices. Since the conflict began, gas prices in the US have fallen 6 cents on a national average, according to fuel price tracking website GasBuddy.
The reasons behind U.S. gas prices staying low are twofold. Firstly, the pandemic has resulted in fewer people travelling and so the demand for gasoline has decreased. This has been partially offset by an increase in demand for heating oil, but analysts say this won’t be enough to push prices up.
The second reason is OPEC’s production cuts. In principle, any instability in the Middle East should lead to spikes in fuel prices all over the world as a result of supply disruptions. However, the Organization of the Petroleum Exporting Countries (OPEC) has cut its own production significantly since September, leading to a surplus in supply which has kept U.S. prices low.
It is also likely that the U.S. government and American companies are actively working to ensure the market remains stable. Many analysts consider it possible that the United States is using its influence to get other countries, especially those in the Middle East, to maintain production levels of petroleum commodities.
In conclusion, despite the war between Israel and Hamas, analysts say U.S. gas prices are likely to remain low, while prices of other fuels are expected to stay relatively stable.
