GasBuddy: Many International Issues Pushing Diesel Prices Higher

The price for West Texas Intermediate, the oil used by refineries in the U.S. to make gasoline, diesel and heating oil, increased over the past couple of days, up to $57 a barrel. In a tweet Monday, President Trump called on OPEC to increase production. But as GasBuddy’s Dan McTeague pointed out, OPEC is not the only reason oil prices have moved higher in recent days. He said the main driving force is fundamental economics.

“A lot of the oil the U.S. relies on is heavy oil and Canada has curtailed, Saudi Arabia isn’t interested in selling much more to the U.S. Gulf Coast. Mexico can’t make up the difference, and we know the ongoing crisis in Venezuela, which is known as well for its heavy oil, continues to stymie certain types of oil.”

McTeague added trade talks between the U.S. and China have the potentially to greatly impact oil prices. He said while a trade deal between the two superpowers would be good news for farmers, it would also push oil prices higher in the coming months. When taking a look at diesel prices, the national average for a gallon moved up five cents to $2.92, the Washington average held steady at $3.16, while the Oregon average increased one cent to $3.05.

As far as the local prices are concerned: