Oil Market Turmoil Spikes Gas Prices Ahead of US Inflation Data
The ongoing war in Iran has sent shockwaves through oil markets, causing turmoil that may have long-lasting and far-reaching effects. After an OPEC+ meeting on Sunday, the group warned that damage to Middle East energy assets will impact oil supply even after the conflict ends.
With US inflation data due out later this week, American consumers are set to feel the pinch of higher gasoline prices. Economists predict a 1% increase in the consumer price index for March, the sharpest one-month advance since 2022, driven by gas prices at the pump increasing by about $1 per gallon.
The war's impact on oil supply is already being felt, with Brent's prompt spread ballooning above $10 a barrel in backwardation, the widest since the conflict began and topping peaks in 2022 after Russia invaded Ukraine. Dated Brent has surged above $140 to its highest level since 2008.