GasBuddy analyst Patrick De Haan predicts U.S. gasoline prices will hit record highs for August, surpassing $4 per gallon, driven by global supply issues and escalating U.S.-Iran tensions. This outlook suggests continued inflationary pressures for consumers and businesses, with potential for further price increases if geopolitical risks persist.
GasBuddy analyst Patrick De Haan is forecasting that U.S. national average gasoline prices will reach new record highs for August, exceeding $4 per gallon, a significant milestone. This is primarily attributed to tightening global fuel supplies due to Ukrainian strikes on Russian refineries, Russia's diesel export restrictions, and escalating U.S.-Iran tensions, including recent missile attacks. The immediate impact is higher costs for consumers and businesses, potentially dampening economic activity. In the short term, traders should anticipate continued upward pressure on crude oil and refined product prices, benefiting energy producers. Long-term implications depend on the de-escalation of geopolitical conflicts; a resolution could bring prices down, while continued tensions pose an upside risk to energy costs. The key risk for traders is underestimating the persistence of geopolitical factors in driving energy inflation.