CHATTANOOGA, Tenn. — The situation in the Middle East has led to crude oil prices jumping more than eight-percent; analysts say that’s the largest one-day spike since 2022.
Gas Buddy reports the average price of gasoline will likely climb to about $3.30 and diesel closer to $4.25.
But local experts say, our area may not see that much of a difference at the gas pump for the time being.
UTC Economist Howard Walls says gas prices and global tensions often go hand in hand, but he says this time may be different.
“We’re better prepared because we get much more of our own fuel domestically than we used to,” says Dr. Wall. “We now are exporters of fuel. So we should actually not see as big a blow as in the past.”
Wall’s comments come after oil prices jumped Monday following U.S. strikes against Iran.
Brent Crude, a key global benchmark, climbed above $80 a barrel as markets reacted to the conflict.
But even with that spike, oil prices are still lower than they were a year ago.
According to AAA, the current Tennessee average for a gallon of regular gas is about $2.72, a level that’s held relatively steady in recent weeks
Wall says that stability isn’t an accident.
“There’s a buffer for the time being, because suppliers have bought things on the on futures markets, so they’ve already have their prices locked in for a while, and the US production should cushion the blow of anything that goes on in the rest of the world.”
Wall adds drivers could start seeing gas prices increase:
“I’m not sure of the exact length of time. But if it starts lasting more than a month, then you’ll start really, I think we might start actually seeing something.”Comment with Bubbles
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For now, Wall advises there’s no need to panic, but if the conflict drags on, that cushion could shrink.
