Discover high-conviction stock picks and new investing opportunities with the TipRanks Smart Investor Newsletter
Pressure at the pump is likely to remain elevated until the Strait of Hormuz, which handles roughly 20% of global oil flows, reopens. Even then, it could take months for supply to normalize.
Travel Season Adds Pressure to Gas Prices
Furthermore, another factor that could keep prices high is the start of the busy summer travel season. With higher demand, gas prices could remain high even as supply conditions gradually improve.
“With gasoline demand on the rise and the prolonged closure of the Strait of Hormuz, pump prices are likely to remain elevated as the summer travel season gets underway,” said AAA.
