DeHaan: Fuel Prices Expected To Continue Downward As September Starts

Time for your PNW Ag Network Price at the Pump.  Monday may have been a holiday here in the U.S., but trading continued across the globe.  And in that trade, we saw oil prices continue to slip, with West Texas Crude trading Monday down slightly to $73 per barrel.  And it’s not just oil prices that are low.  Patrick DeHaan with Gasbuddy.com said gas prices are currently at the lowest levels reported since March.

“The price of diesel has also been declining it stands at $4:41 that's the lowest we've seen diesel prices in Washington since early 2022.  So, all in all, some pretty good-looking prices, a trend that will probably will continue through Labor Day and beyond.” 

DeHaan added at this point, despite the November general election, the fall months are expected to be fairly quiet and won’t have a big impact on fuel prices.

“Gas prices are less determined by who is in the White House and more determined by the current balance of supply and demand.  That is economics, and that is what defines gas prices.  And you know as we've seen economic slowdowns, the economy has slowed down and demand has slowed down, we look poised to see the Federal Reserve start cutting interest rates, in just a few weeks.  And that could start the economy with more growth and that could lead to eventually higher prices but again there's a lot of different political opinions I would certainly just have folks keep in mind that gas prices are more dictated by a balance of supply and demand than anything else.”

DeHaan added one thing to watch that could impact oil prices in the near future, hurricane season in the Gulf of Mexico.  Issues that he anticipates will impact oil prices as we look to close out 2024 and welcome in 2025 include the health of the U.S. and Chinese economies, potential refinery closures, as well as turmoil in Russia and the Middle East.

Remember to join us Tuesday mornings during Northwest Ag Today for your PNW Ag Network Price at the Pump.

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