Global crude oil prices rose above $70 per barrel Monday for the first time in three months. But will we feel the pain at the pump?
According to analysts, the markets are concerned about Iran retaliating for the death of General Qassem Soleimani, who was killed in a U.S. airstrike last week.
If Iran does target infrastructure related to oil production, decreases its output or access to it, such a move would have a global impact. Iran produces nearly 4 million barrels of oil per day, 5th-most in the world.
However, geopolitics in the Middle East may not have as much influence over oil prices as they once did. The United States became the world’s largest crude oil producer in 2018 – we churn out about 12 million barrels per day.
An Iranian disruption would be less than ideal; but it may take months to notice a significant difference at the gas pump, if we see one at all. On Monday, the national average price of a gallon of gasoline was just two cents higher than it was more than a week ago.