Price At The Pump: Diesel Prices Edge Up, While Gas Moves Lower

Oil prices started the week, split, with West Texas moving slightly higher and Brent Crude trading lower. However, by early Tuesday trade, both were trading higher by roughly 2%.

Patrick DeHaan with Gasbuddy.com said the various geopolitical tensions, whether that’s the U.S. and Iran, Russia and Ukraine remains top of mind for the oil markets.

"I think what's taking over is the potential that President Trump outlined pausing Russian sanctions," DeHaan said. "Though personally, I think that may be the wrong message to send to Russia. having more Russian oil on the market potentially by easing sanctions would mean more supply. Having said that, when it comes to refined products, we've seen diesel prices going up gently in the last week across the majority of states, while gas prices have decreased in a majority of states over the last week.”

When it comes to local diesel prices, Oregon is the only Northwest state to see prices move lower this week, down to $6.74 a gallon, while Washington’s diesel price increased to $7.31, and Idaho’s diesel prices moved up to $6.46.

As we watch oil and diesel prices in the coming weeks, what will keep the lion’s share of DeHaan’s attention?

"There's been talk now of a deal between Russia, China and the U.S. in regards to Ukraine. I don't think that's going to be very successful leaving out Ukraine, but we'll have to see," DeHaan said. "So, I think it's those high-level issues and what trickles down from there. And also what's going on between the U.S. and Iran is going to continue to be very impactful. So, no shortage of things to watch. I think those are some of the wild cards. In addition, China has seen an increase in the amount of diesel it's been supplying global markets. So, China's refineries are also something I'll be keeping an eye on as well.”

For our entire conversation with DeHaan, listen to our Price at the Pump Podcast:

And remember to join us Tuesday mornings during NW Ag Today for your PNW Ag Network Price at the Pump.

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