Gas prices have started to rise again as consumers prepare for an upcoming holiday in the U.S. The national average price for regular gas sits at $4.528 on Friday, which is down slightly from the $4.546 regular price last week. However, the upcoming Memorial Day weekend is set to push gas prices higher as consumers prepare to travel.
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Consumers will find the most expensive gas prices in the U.S. on the West Coast and in the North. California has the highest average fuel price at $6.142 per gallon, followed by Washington at $5.775 per gallon. On the flip side of that, the cheapest fuel prices can be found in Texas, with its average of $3.996 per gallon, followed by Mississippi at $4 per gallon.
The catalyst behind inflated gas prices is the war in Iran. This has caused disruptions to shipping routes that pass through the Strait of Hormuz, as Iran has committed to keeping the passage closed until peace negotiations are complete. That matters to gas prices as roughly 20% of the world’s oil travels through this route. This has pushed the price of oil to around $100 per barrel.
How the War In Iran Affects Oil Stocks
The majority of oil stocks were on the rise Friday alongside the increased gas prices.
- Exxon Mobil (XOM) stock was up 1.9%.
- Chevron (CVX) stock rallied 1.36%.
- ConocoPhillips (COP) stock gained 1.96%.
- EOG Resources (EOG) stock climbed 1.76%.
- Occidental Petroleum (OXY) stock soared 2.92%.
- BP (BP) stock rose 0.73%.
Which Oil Stock Do Analysts Favor?
Turning to the TipRanks stock comparison tool, traders can see which of these oil stocks analysts prefer. Chevron stands out as the only one with a Strong Buy consensus rating, while several others have Moderate Buy ratings. Occidental Petroleum has the lowest consensus rating at Hold.
Looking at upside potential, BP has the highest at 17.56%, followed by ConocoPhillips at 17.42%, and Chevron at 14.49%. It is worth noting that all of the oil stocks listed have potential upsides.
