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FORT McMURRAY — Gasoline prices are on the move again across North America as renewed fighting between Iran and the United States pushes oil prices higher and raises fresh concerns about global energy supplies.
GasBuddy says average gasoline prices rose for the first time since May following eight consecutive weeks of declines.
Patrick De Haan, head of petroleum analysis at GasBuddy, said gasoline prices climbed across much of the continent as crude oil markets reacted to the collapse of the ceasefire and renewed attacks in the Middle East.
“The turnaround comes as oil prices have surged following the collapse of the ceasefire between the U.S. and Iran and the start of new attacks,” De Haan said.
He warned additional gasoline and diesel price increases could follow in the coming week as the conflict continues and Ukrainian attacks on Russian refineries add further pressure to supplies of refined petroleum products.
Oil prices climbed sharply to begin the week after renewed military exchanges and another attack on a commercial vessel travelling through the Strait of Hormuz.
Shipping traffic through the strait has fallen sharply after gradually recovering during the ceasefire.
The Strait of Hormuz is one of the world’s most important energy corridors and normally carries about one-fifth of global oil and natural gas shipments.
West Texas Intermediate crude climbed above US$74 per barrel in early Monday trading, compared with about US$68 one week earlier.
Brent crude rose above US$79 per barrel, up from less than US$72 a week earlier.
Giovanni Staunovo, a commodities analyst with UBS, said rising tensions and reduced oil flows through the Strait of Hormuz are pushing crude prices higher.
Markets are also watching the number of vessels entering the Persian Gulf amid concerns reduced shipping traffic could eventually force producers to limit output.
GasBuddy said the latest increases remain less severe than those experienced earlier this year, but continued instability in the Middle East and disruptions to global refining capacity could keep upward pressure on fuel prices.
The renewed increase comes as inventories of gasoline and distillate fuels remain below their five-year seasonal averages.
De Haan said the outlook remains fluid, with further increases possible depending on developments in the Middle East, shipping traffic through the Strait of Hormuz and disruptions affecting global oil and refined petroleum supplies.
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