Analysts doubt US oil reserve sales will offset supply shortfalls
Analysts interviewed by the Washington Post believe that even selling all the oil from US strategic reserves would not be enough to compensate for supply disruptions. Since the start of the US and Israeli military operation against Iran, fuel prices in America have risen by 17%, reports CNN.
By Monday morning, the average gasoline price in the US reached $3.48 per gallon, increasing by 50 cents since the Middle East conflict began. Meanwhile, oil supply is decreasing as Saudi Arabia cuts production due to restricted movement through the Strait of Hormuz, leading to storage facility overflows, Bloomberg sources say.
The situation regarding fuel supply and pricing is likely to remain tense and may worsen if the conflict in the Middle East escalates further.
