NEWTON, Mass. — Gas prices across Massachusetts have not yet dropped, despite recent signs of easing in global oil markets.
According to AAA, the average price for a gallon of regular gas in Massachusetts rose by one cent overnight to $3.98. The national average remains unchanged at $4.16, but that figure is significantly higher than it was just a month ago, when it stood at $3.47 — an increase of 69 cents.
Energy analysts say relief at the pump may still be weeks or even months away.
CNN reports that oil prices initially fell following the announcement of a two‑week ceasefire, but the agreement hinges on Iran reopening the Strait of Hormuz, a critical shipping route for global oil supplies.
Analysts warn that the deal does not guarantee that oil tankers will resume moving through the strait quickly.
Industry experts estimate that as many as 3 million barrels of oil per day have been affected by recent disruptions. While production could begin to recover in the coming months, analysts say full repairs could take years.
“It’s going to be weeks and months to get the production back online, and given that about 3 million barrels a day of refining capacity has been damaged, that can take months to years to be repaired,” Andy Lipow of Lipow Oil Associates said.
At this point, markets are closely watching vessel traffic in the Strait of Hormuz to see whether the ceasefire holds and shipping resumes at normal levels.
Analysts say if the agreement remains in place and oil shipments increase, retail gas prices could begin to fall in the coming days, though any significant decrease is expected to be gradual.
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