Price at the Pump: Fuel Prices Edge Down Nationally, In The NW

Oil prices edged down in trade early this week, primarily due to the announcement that G7 countries plan to release oil and refined products from their strategic reserves. Add to that, a lack of new escalations between the United States and Iran, and oil price dipped to start the week.

In early Tuesday trade both West Texas and Brent crude were trading lower by about 2% at $87 and $98 respectively.

Fuel Prices Recently Dropped. Will That Continue?

On top of that, fuel prices decreased over the past week; Washington's average for diesel slipped ten cents, Oregon's price dropped five cents, while Idaho's average for a gallon of diesel decreased 12 cents over the past week.

"GasBuddy is reporting that 48 states saw gasoline and diesel prices declining in the last week," said Patrick DeHaan with Gasbuddy.com. "A lot of that happening not only because of the G7 release announcement, some states also seeing significant relief as we see states now issue waivers, gas tax suspensions as well to improve the situation."

DeHaan said motorists may continue to see marginally lower prices, but he doesn't expect any sizeable drop until the U.S. and Iran return to the negotiation table.

"It's a roller coaster ride that we're continually on," said DeHaan. "We don't know until there's something definitive. It's obviously just merely speculative when the countries are going to talk and hammer something out. For now, it hasn't happened and there's no telling if and when it might happen in the weeks ahead."

What Does The Future Of Oil Prices Look Like?

For more of our conversation with DeHaan, including how much oil is actually being moved out of the Middle East via the Straight of Hormuz, or by other routes, listen to our Price at the Pump podcast:

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

If you have a story idea for the PNW Ag Network, call (509) 547-9791, or e-mail glenn.vaagen@townsquaremedia.com