Price At The Pump: No Deal With Iran Pushes Oil Prices Higher

Oil prices started the week higher, moving up by around 4% for both West Texas and Brent crude.

“After the president teased a reopening of the strait and a deal with Iran a week ago, we've seen nothing really develop as a result of that," said Parick DeHaan with Gasbuddy.com.  "And oil prices started to climb midweek last week after it became a little bit more apparent that Iran was on a different wavelength. And we've continued to see oil prices slowly going back up.”

Diesel Prices Moving Up Nationally & In The Northwest

Dehaan added those higher oil prices are already pushing fuel prices upward.  He said the nation average of a gallon of diesel climbed 17 cents in the past week.

“After slipping four cents a gallon between mid to late last week, we are back on the climb," DeHaan pointed out.  "Average diesel right now in Washington state about $6.12 a gallon, that's up from $5.85 a month ago. Gasoline, though, still down six cents from last week, the statewide average is at $5.06. But as I mentioned, we could start to see a majority of states swinging the other way with gasoline and diesel going up until any sort of deal does materialize.”

The other two northwest states are split on their diesel prices, with the cost of a gallon in Oregon dropping to $5.49, while Idaho’s rate moved up to $5.35.

Iran Is Not The Only Issue

And while most eyes are on the U.S. and Iran for a direction when it comes to oil prices, DeHaan noted Russia & Ukraine continue to be a concern.  And add to that, he said, activity in the Atlantic Ocean is starting to pick up, meaning the possibility of hurricanes disrupting oil production and/or processing in the United States.

Remember to join us Tuesday mornings during NW 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