Gas prices likely to rise as Gulf attacks continue

Gulf attacks are disrupting oil market sentiment and experts warn U.S. pump prices could reach about $5.00 per gallon before summer. The supply-risk from continued hostilities increases upside for crude and gasoline prices, posing upside pressure on headline inflation and downside risk to consumer discretionary spending. Energy producers and oil services could benefit, while consumption-sensitive sectors and inflation-exposed assets face near-term headwinds.

Analysis

Gulf attacks are disrupting oil market sentiment and experts warn U.S. pump prices could reach about $5.00 per gallon before summer. The supply-risk from continued hostilities increases upside for crude and gasoline prices, posing upside pressure on headline inflation and downside risk to consumer discretionary spending. Energy producers and oil services could benefit, while consumption-sensitive sectors and inflation-exposed assets face near-term headwinds.