WASHINGTON (TNND) — The Strait of Hormuz is a critical chokepoint in the world’s oil supply, driving up gas prices as the conflict with Iran continues.
President of Lipow Oil Associates Andy Lipow joined The National News Desk to discuss where oil and gas prices will go from here.
On Wednesday, the cost of oil sits at $90.96 a barrel, and the average price of gas comes to $3.58.
White House Press Secretary Karoline Leavitt said on Tuesday that the Trump administration is doing everything it can to keep the Strait of Hormuz open.
“Rest assured, to the American people, the recent increase in oil and gas prices is temporary,” Leavitt said.
President of Lipow Oil Associates Andy Lipow joined The National News Desk to discuss where oil and gas prices will go from here.
“I do expect that the national average price of gasoline is going to continue to rise to between $3 and $0.75 a gallon, and $3.80,” Lipow said.
Reuters reported that Chevron and Shell are closing in on oil production deals in Venezuela. However, Lipow said that tapping those resources could be “years away.”
“The help that we’re going to get from additional Venezuelan oil is really quite limited. What the world really needs is for the straits to reopen. And that’s why we’re seeing the International Energy Agency looking at releasing 400 million barrels of oil,” Lipow said.
What that looks like depends on the country, Lipow added.
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” Asian countries are going to have an immediate release of their strategic reserves because they’re so dependent on Middle East supplies. Whereas here in the United States, where we still have plenty of oil inventory, it may be delayed several weeks,” Lipow said.
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