Six months after the conflict involving the United States, Israel and Iran began, the effects of disruption in global oil markets are still reaching New York drivers, truckers and homeowners preparing for the heating season.<\/p>\n
The conflict began Feb. 28 and affected shipping through the Strait of Hormuz, a narrow waterway connecting the Persian Gulf and the Gulf of Oman. The U.S. Energy Information Administration says oil flow through the strait was equivalent to about 20% of global petroleum-liquids consumption in 2024.<\/p>\n
Greg Nowell<\/a>, an associate professor of political science at the University at Albany, said the route\u2019s importance means instability there can have global consequences.<\/p>\n \u201cThe Strait of Hormuz is basically the passageway through which about 20% of the world\u2019s oil passes in good times,\u201d Nowell said.<\/p>\n Nowell said alternate export routes have helped avoid some of the global shortages that analysts feared at the beginning of the conflict. But he said the disruption still affected worldwide oil supplies and prices.<\/p>\n \u201cThere are a few alternate routes which have kept the oil flowing, but it has had a major impact nonetheless on global oil prices and global supplies,\u201d Nowell said.<\/p>\n The effects have been visible at gas stations across New York. AAA\u2019s statewide<\/a> average for regular gasoline was about $4.19 a gallon Friday, while the average diesel price was about $5.73 a gallon.<\/p>\n New York\u2019s statewide average regular-gas price was $4.085 per gallon for the week of Aug. 24, according to state data based on U.S. Energy Information Administration figures. That was up 33.7% from the same week a year earlier. The upstate New York average was $4.165 per gallon.<\/p>\n Robert Sinclair Jr., senior manager of public affairs for AAA Northeast, said crude oil sold for $67.02 a barrel on Feb. 27, reached a peak of $112.95 on April 7 and stood at $83.46 on Friday.<\/p>\n \u201cSo goes the price of crude oil, so goes the price of gasoline,\u201d Sinclair said.<\/p>\n Diesel costs also affect the broader supply chain because trucks move food, medicine and other goods to stores and consumers.<\/p>\n Zach Miller, vice president of government affairs for the Trucking Association of New York, said trucking companies have limited ability to absorb higher operating costs.<\/p>\n \u201cThere\u2019s only so much costs that the industry can take on,\u201d Miller said. \u201cWhat a lot of people probably don\u2019t realize is that the trucking industry operates on very thin profit margins. We\u2019re talking about between 1.5% and 3.5%, and the truth is, most trucking companies are small businesses.\u201d<\/p>\n The trucking industry provides nearly 328,000 jobs<\/a> in New York, according to the Trucking Association of New York.<\/p>\n Miller said increased trucking costs can move through the supply chain and eventually reach the consumer.<\/p>\n For home heating-oil customers, the price swings come as colder weather approaches.<\/p>\n