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Andrew Ackerman, industry influencer, reports that the Federal Reserve Bank of Dallas projects the cost of a barrel of crude oil could rise above $167 if the Strait remains closed through September.
According to Ackerman, this price surge would correspond to at least $5 per gallon of gasoline, based on historical trends.
Last month, energy prices registered an 11 percent jump, the largest monthly increase in more than two decades, amid record gasoline prices as noted by Ackerman in a previous report. Recent data also shows that rising U.S. costs have reduced the purchasing power of $1 million to about $480,000 over 30 years, according to his earlier analysis. These trends highlight ongoing concerns about the impact of energy prices on consumer spending.