Uncertainty looms as last oil tanker from Middle East arrives in California | California
The average price of a gallon of gas in California is already above $6, but uncertainty is growing as the last oil tanker from the Middle East arrives in the Golden state this week.
Los Angeles Times On Sunday, it was reported that the New Corolla, which had been traveling from the Middle East to California before the war began, was carrying nearly 2 million barrels of crude oil from Iraq to Long Beach. This was the last shipment scheduled to pass through the Strait of Hormuz.
Siva Gunda, vice chairman of the California Energy Commission. he told lawmakers on Tuesday It was stated that the state can meet the fuel needs of the next six weeks with its current supply.
California has the highest gas prices in the United States. It imports a third of its oil from the Gulf, and the state will now need to find new sources to replace it. Compared to other states, California imports significantly more of its oil supply from abroad.
While oil prices have risen in recent weeks, available supply has not yet been seriously affected as markets continue to buy oil that was already in transit when the conflict began.
“The war in Iran and the closure of the Strait of Hormuz were actually buffered by the fact that all these tankers were at sea when the Strait of Hormuz was closed,” said Michael Ross, a professor at the University of California, Los Angeles. ABC7.
“So all of that supply is still reaching consumers. This is the last shipment of supply that has kept prices relatively stable. That should worry us.”
The US-Israeli war with Iran has significantly disrupted the global oil market and caused gas prices to rise worldwide. The American Automobile Association reported Tuesday that the national average reached $4.54, while the average price in California was $6.16. Prices are at their highest level in nearly four years.
The price of gas is often a major source of debate in California politics, including Tuesday’s gubernatorial debate. While Democratic candidates largely blamed the recent rise in costs on Donald Trump’s war in Iran, Republican Steve Hilton disputed those claims, pointing to California’s regulations.
California Governor Gavin Newsom harshly criticized Trump for rising prices.
“An inconvenient truth for MAGA: Gas prices have risen MORE nationwide than they have in California since the beginning of the war,” Newsom said. “There is no plan. There is no exit strategy. And Americans are paying the price for it every day.”
On Wednesday, stock markets rose and oil prices fell after Donald Trump said the war would end and the Strait of Hormuz would be “open to everyone” if Iran reached a deal with Washington.
Meanwhile, economic data shows that rising fuel prices hit low-income Americans the hardest. Lower-income Americans cut back on gas and spent more money at the pump after the Iran war began, according to a report from the Federal Reserve Bank of New York.
