Oil, Diesel Prices Continue Holding Pattern

It’s a holding pattern most consumers don’t mind. Oil prices, and diesel prices have showed very little change over the past couple of months. In fact, for much of this year, oil prices have held around the $50 per barrel mark, meaning fuel prices have not varied much.

However, that could change in the coming weeks.

Marie Dodds with AAA said several oil producing nations have agree to hold production at reduced levels through March 2018, in hopes of forcing oil prices higher. Dodds told the Washington Ag Network the next couple of weeks will be very interesting to watch.

“Crude oil prices have moved higher, but I think OPEC, and the non-OPEC countries, including Russia involved in this deal were hoping these production cuts would send crude oil prices back into the $55 to $65 per barrel range.”

In late 2016, OPEC announced it was capping production to remove a glut of oil on the open market. So, why didn’t that cut force oil prices higher? Dodds said since OPEC initiated these cuts initially, U.S. oil production has increased 10%.

“And the U.S. now has an output of about 9.3 million barrels per day. That is close to levels of the world’s top producers, which includes Russia and Saudi Arabia. Some market watchers say that U.S. production could soon reach or even top 10 million barrels per day.”

Currently, the national average for a gallon o diesel is holing at $2.50, a one cent decrease in the past week. The Oregon average held at $2.67, while Washington’s diesel average was unchanged this week at $2.87.

Here are some of the lowest diesel prices we could find across the Inland Northwest: