Israel-Hamas War: Will gas and home heating oil prices spike?

Global oil prices are up 4% following the attack on Israel, making drivers and homeowners nervous about the upcoming winter.

John Craven

Oct 10, 2023, 9:40 PM

Updated 286 days ago

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Global oil prices are up 4% following the attack on Israel, making drivers and homeowners nervous about the upcoming winter.
But energy analysts say, don’t worry – yet.
“DON’T PANIC”
At a Global station in Norwalk, gas is $3.65 per gallon. But some motorists believe the war will drive prices even higher.
“It might go to $5,” said Adonna Frometa, of Trumbull.
Home heating oil customers are concerned too. Some suppliers have been flooded with calls from customers wondering whether to lock in their price now.
But Standard Oil of Connecticut owner David Cohen said, don't make any sudden moves.
“Don't panic,” he said. “A lot of people – sometimes they lock in when there's an event, and then the prices go way down and then they feel like they had made a bad choice.”
Case in point: Right now, home heating oil averages $4.29 a gallon, according to the Connecticut Department of Energy and Environmental Protection – far below last fall’s peak of almost $6.
WIDER CONFLICT?
Following the attacks, crude oil prices jumped 4% on Monday, closing at $86 a barrel. But prices leveled off on Tuesday.
The Connecticut Energy Marketers Association expects markets to stabilize in the coming days.
“Typically, once Wall Street catches their breath and realizes there has been no fundamental change in supply or spike in demand that was unanticipated, typically markets will calm down,” said CEMA president Chris Herb.
Israel does not produce much oil. But Herb said prices could spike if the U.S reimposes an oil embargo on Iran, or if the country restricts shipping access to the Strait of Hormuz.
“If the war were to expand to oil producing states like Iran – if Israel decided to retaliate against them,” he said. “Again, these are all ‘ifs.’”
Even in that scenario, Herb said price increases may happen more gradually – especially with the summer driving season winding down.
Still, some drivers are filling up now – and re-considering their car choices.
“I'm going Tesla,” said Kendall Gill, of Norwalk.


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