Gas costs in Texas start to fall this time of year. Will war in Israel push prices to $5?
Just a year after Russia invaded Ukraine — a war that set gas prices soaring — the attack on Israel by Hamas militants could set off a similar spike in oil costs in the U.S.
The Russian invasion pushed global crude markets to raise prices in early 2022, which in turn inflated gas prices everywhere. At its highest point in 2022, some gas stations in Fort Worth were charging nearly $5 a gallon before the market stabilized to around normal levels by year’s end.
Now, the conflict in the Middle East could upend prices at a time of the year in Texas when gas prices begin to drop off. Analysts fear the instability could wreak havoc with the oil markets.
For now, the average gasoline price in Fort Worth has fallen 21.8 cents in the last week, averaging $3.10 a gallon, according to GasBuddy, a website that tracks gas prices in the U.S.
Average gas prices are lower in the past month as well, hovering around 27 cents down. In addition, the average gas price now compared to a year ago is 10.7 cents lower, according to GasBuddy.
“Even the price of diesel has seen downward pressure with oil prices plummeting last week on fears that the Fed will be forced to continue raising rates, eating into demand growth, leading a barrel of crude to drop into the mid-$80s, but we remain concerned about a potentially destabilized Middle East and the potential impact to oil prices should the region see violence escalate,” said Patrick De Haan, head of petroleum analysis at GasBuddy in a statement.
Palestinian militants attack Israel over weekend
Over the weekend, Israel declared war on Hamas, a militant Palestinian group that controls the Gaza Strip, after waves of Hamas fighters crossed north into Israel attacking towns and taking hostages. Hamas rockets rained on the Israeli cities of Jerusalem and Tel Aviv. As of Monday, over 1,110 people have been killed in the war, according to the Associated Press.
Though the exact number killed in the fighting was clouded by the continued fighting and the uncertain fate of many Israelis and Palestinians in embattled areas, Prime Minister Benjamin Netanyahu warned Israelis to brace themselves for the days ahead.
“We are embarking on a long and difficult war that was forced on us by a murderous Hamas attack,” Netanyahu said in a statement Saturday. He added that Israel’s military had “begun the offensive phase, which will continue with neither limitations nor respite until the objectives are achieved.”
A prolonged war will certainly affect oil prices in the U.S. energy experts say.
During early trading on Monday, global oil prices jumped slightly but only by a few percent, according to Reuters. Brent crude, the global benchmark, jumped roughly 4 percent to $88 a barrel. West Texas Intermediate, the U.S. benchmark, jumped adding more than 4 percent to roughly $86 a barrel.
As the war rages on, oil experts will have a better grasp on how much it will affect global costs.
Back stateside, however, gas prices are actually dropping and analysts hope the trend will continue into November despite the overseas conflict.
“Even with oil prices rising as a reaction to the attacks, I remain optimistic the national average could decline another 25-45 cents by late November, with prices falling potentially nearly triple that in California,” De Haan said..
The cheapest gas station in Fort Worth had prices at $2.85 a gallon on Sunday, while the most expense was $3.70.
10 CHEAPEST GAS STATIONS IN FORT WORTH
- $2.89: Walmart, 5336 Golden Triangle Blvd.
- $2.89: Walmart, 4550 Heritage Trace Parkway
- $2.93: Murphy Express, 841 W Rendon Crowley Road
- $2.94: Murphy Express, 2228 Jacksboro Highway
- $2.94: Buc-ee’s, 15901 North Freeway
- $2.95: Costco, 8900 Tehama Ridge Parkway
- $2.95: Exxon, 2441 Heritage Trace Parkway
- $2.95: QuikTrip, 3201 Golden Triangle Blvd.
- $2.95: QuikTrip, 12345 South Freeway
- $2.95: QuikTrip, 3436 N Tarrant Parkway
This story was originally published October 9, 2023 at 12:51 PM.
