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Snyder Reports, 5/19/26
"Gas Prices Will Skyrocket In The Next 4 Weeks"
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"Americans Are About To Find Out
What $10 Gas Really Means"
by Finance Hour
"Americans are about to find out what $10 gas really means. The Washington Post reported this week that the Strait of Hormuz has been mostly shut to marine traffic for two months. Twenty percent of the world's oil supply has been cut off since February 28th. Gas is at $4.11 per gallon nationally according to AAA. Diesel hit $5.62, a 49 percent increase since the war started. Reuters reported that analysts forecast oil could hit $200 per barrel if Kharg Island is damaged. Goldman Sachs warned Hormuz closure could push oil to $150 or higher. The Middle East Monitor documented that every $10 increase in oil prices raises consumer inflation by half a percent. At $200 oil the math at the pump is $10 per gallon.
The average American drives 800 miles per month to work. At $10 gas in a vehicle getting 25 miles per gallon that commute costs $320 per month. For a two-car household that is $640 per month in fuel just to earn a paycheck. Diesel at $14 per gallon means a single grocery delivery that costs $511 in fuel today would cost $1,274. Trucking companies pass that cost to grocery chains and grocery chains pass it to you. The farm-to-shelf supply chain has six to eight energy-dependent steps and the cost compounds at each one. Grocery stores carry 72 hours of inventory. Sixty million rural Americans have no public transit alternative. A nurse in rural West Virginia driving 35 miles to the hospital would spend $560 per month on fuel at $10 gas on a take-home pay of $3,700. Five and a half million households in the Northeast heat with oil. At $12 per gallon a typical New England winter costs $7,200 to $9,600.
The CDC documents approximately 1,300 hypothermia deaths per year concentrated among the elderly and the rural poor. Airlines would ground regional routes as jet fuel costs double. The U.S. Travel Association estimates the travel industry supports 16 million jobs. At 8 to 10 percent inflation the Fed would be forced to raise rates aggressively. Mortgage rates could climb past 10 percent. The stock market fell 57 percent during the 2008 crisis. A retiree with $500,000 who loses 30 to 40 percent has $300,000 left. The system that delivers $3 gas to your pump is a 21-mile-wide waterway between Iran and Oman. It has been closed for two months. And 230 loaded oil tankers are sitting on the other side of it."
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The Economic Ninja, 5/19/26
"California's Fuel Shortage Gets Critical -
Here's What's Coming"
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