Price at the Pump: Diesel Prices Hit Record Highs

Oil prices have been on a rollercoaster ride ever since the United States and Israel started bombing Iran.  Initially oil prices moved higher, but last week, oil prices dipped after President Trump paused attacks on Iran.

But since those have resumed, oil prices have again moved higher.  In early Tuesday trade, both West Texas crude and Brent Crude were trading higher by about 2%.

Washington's Diesel Price Hits A Record

It should come as no surprise that fuel prices are moving higher because of these increased oil prices, but what has perhaps surprised many in the farming world is how steep the jump has been for diesel prices, which in Washington are up 14 cents this week to $6.50 a gallon.

“Diesel prices have never been higher in the areas of Washington state," DeHaan said.  "Certainly seeing some of that record setting levels in California as well, where some cities now getting close to $8 per gallon of diesel. So certainly some lofty diesel numbers increases and slowed, but I do expect them to continue this We, of course, a lot of that really contingent on what develops between the U.S. and Iran.” 

Where Are Oil Prices Going From Here?

DeHaan said as far as the future of oil and fuel prices, it’s hard to predict where prices are going.  If the United States and Iran are able to reach some kind of agreement in the coming weeks, he thinks prices will start to move lower.

But if President Trump sends in ground troops?

“It certainly would inflame the situation and likely push oil prices up, but it depends on the degree and what any campaign, any ground troop campaign may look like," DeHaan said.  'I think that's going to be the details. Will it ultimately end or improve the situation? I think there is a possibility that sending ground troops in may result in a faster conclusion, although it just depends on the manner in which ground troops may be utilized. So I think there's a lot of open-ended questions there. Ultimately, that may lead to a faster resolution to the situation, but it also has plenty of risk with it as well.”

DeHaan added either way, he expects the increases we’ve seen in oil and fuel prices to slow in the coming weeks. 

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