Trump Says Hormuz No Longer Impacts Gas Prices. Is He Right?
A projectile hit a tanker within the Strait of Hormuz on Monday, setting its engine room on fireplace. Meanwhile, President Donald Trump claims that the strait is now not why Americans pay extra for gasoline.
The UK Maritime Trade Operations company (UKMTO), which logs assaults on service provider ships, mentioned the crew was preventing an engine room blaze. It was the company’s tenth incident discover since October 1.
Who Trump Blamed for Gas Prices
According to US President Donald Trump, constraints on the Strait of Hormuz had been now not the rationale Americans are paying extra on the pump. Instead, he pointed at refineries.
“What’s driving up Gasoline is now not the Strait of Hormuz, as a result of Record Numbers of Barrels are popping out now on an virtually every day foundation, however the phrase, ‘Refineries,’ the place Russia’s are being blown up by Ukraine, and the place ours are being closed up, in Blue States, like California, by the Dumocrats,” the President wrote on Truth Social.
Part of that’s true. Middle East crude exports averaged 18.5 million barrels a day within the week to October 1, above pre-war ranges, Kpler knowledge exhibits.
However, the ships maintain getting hit. Monday’s fireplace got here days after one other Hormuz tanker attack rattled markets.
What the Oil Charts Show
US crude sat close to $66 a barrel on February 27, the final buying and selling day earlier than US and Israeli strikes on Iran. It ended Monday close to $91.57, TradingView knowledge exhibits.
Brent, the worldwide benchmark, rose from about $67 to $104. Wholesale gasoline climbed from about $2.30 to $3.20 a gallon. All three spiked in spring, dipped in July and jumped once more in September.
At the pump, common value $4.37 a gallon on Monday, up from $3.13 a 12 months in the past, in line with AAA.
Do Russia and California Explain It?
Ukraine’s drones have battered Russian refineries. The International Energy Agency (IEA) says Russian diesel output fell almost 30%. Moscow has banned diesel exports by producers by October 31.
US diesel value $6.32 a gallon, almost $2 greater than gasoline. Banks have warned a US diesel export ban would push gasoline greater nonetheless.
California’s two closed refineries processed about 284,000 barrels a day, the Energy Information Administration (EIA) says. That is below 2% of US capability.
On Monday, the Group of Seven (G7) agreed to release 100 million barrels of emergency oil. Americans vote within the midterm elections on November 3.
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