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Oil, gas prices rise sharply throughout the region

Prices for regular gasoline at pumps in Muncy-Williamsport locations were either just below or rising above the $3 mark this week.

They are expected to rise a bit as the war in the Mideast continues.

The war has sent shudders through global energy markets, mainly due to the impact of oil tankers having to traverse through the narrow Strait of Hormuz, as one fifth of the world’s oil supply passes through this narrow choke point, according to The Associated Press.

U.S. Secretary of State Marco Rubio spoke Tuesday to a national television audience on the war and energy concerns.

“This terroristic regime led by radical clerics has the ability potentially to shut off 20% of global energy. That’s the kind of leverage they have because of their navy. We’re going to destroy their navy,” he said. Rubio also told reporters the U.S. has a “plan in place” as crude oil prices spike amid the conflict. “Obviously, markets are going to be reacting to news of what’s happening.”

Across the U.S., the national average for a gallon of regular gasoline went up by more than 5 cents this past week to $2.98, according to the American Automobile Association (AAA), which closely monitors traveling trends.

Some war concerns were already reflected in the price before the conflict started.

The cost per gallon was $3.12 on average across Pennsylvania, according AAA.

As an example, the price for a gallon of regular Tuesday was $2.79 at Sam’s Club, Weis Markets, and Kwik Fill, and $2.99 at Wawa and Sheetz on Maynard Street.

A year ago, the average price per gallon of regular was $3.15 as of this time in March.

Here is more data from AAA:

• Today’s national average: $2.983

• One week ago: $2.929

• One month ago: $2.881

• One year ago: $3.134

The nation’s top 10 most expensive gasoline markets are California ($4.63), Hawaii ($4.40), Washington ($4.35), Oregon ($3.92), Nevada ($3.71), Alaska ($3.59), Arizona ($3.26), Pennsylvania ($3.12), Washington, DC ($3.09), and Illinois ($3.03).

The nation’s top 10 least expensive gasoline markets are Oklahoma ($2.43), Mississippi ($2.52), Kansas ($2.54), Louisiana ($2.55), Tennessee ($2.56), Arkansas ($2.58), Wisconsin ($2.59), Texas ($2.60), North Dakota ($2.61), and Iowa ($2.63).

Refineries already began the process of producing summer-blend gasoline, which contains pricier additives to help reduce evaporation during warmer months, AAA said.

As for gas trends in March, whether there is a war or not, station choice depends on several factors studied below:

Three-quarters of U.S. drivers decide where to fuel up based on station location (75 percent) or price (73%). For example, the Weis store price at $2.79.

Nearly one-third (29%) of U.S. drivers choose based on a rewards program.

Only 12% of U.S. drivers select a station based on whether its gasoline contains an enhanced detergent package.

Nearly half (47 percent) of U.S. drivers don’t regularly buy gasoline that contains an enhanced detergent additive.

Current world market trends

Oil prices also spiked sharply as the widening Iran war disrupted tanker traffic through the strait. Oil prices are leaping with worries that the Iran war will clog the global flow of crude and make inflation even worse.

Tankers travel through the strait, which is bordered in the north by Iran, carry oil and gas from Saudi Arabia, Kuwait, Iraq, Qatar, Bahrain, the United Arab Emirates, and Iran.

Uncertain outcomes

Long-term disruption to ship traffic in the strait could send prices even higher, and so could Iran’s retaliatory damage to the oil infrastructure in other Gulf countries.

A shorter conflict in which disruptions are easily reversible could mean the current price spike won’t last, return to where they were or drop lower.

There are pipelines that circumvent the strait, but they don’t have enough capacity to move all the oil that passes through the waterway.

Analysts say completely blocking the strait would hurt Iran, too, since all of its 1.6 million barrels per day pass through the strait.

Other energy prices spiking

With oil prices up more than 8%, European natural gas futures also are spiking 42% in the wake of the shutdown of a major supplier of ship-borne gas due to the fighting.

The jump came after QatarEnergy said earlier this week that it would stop its production of liquefied natural gas as the Mideast war rages.

Europe relies on shipments of liquefied gas, or LNG, to replace supplies of Russian pipeline gas lost due to the invasion of Ukraine. Shipping has been disrupted in the strait, also a key route for oil and LNG tankers coming from the Persian Gulf.

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