Price At The Pump: Oil Markets Remain Skeptical

The seesaw movement of oil prices continued as the month of August got underway, with prices for West Texas and Brent Crude both dipping to start the week.  As of Tuesday morning West Texas and Brent Crude were trading mixed, with WTI down slightly to $80, and Brent up marginally to $83.

Patrick DeHaan with Gasbuddy.com noted, as in the recent past, this dip is due to President Trump’s announcement of a potential new peace deal with Iran.  DeHaan noted while investors are hopeful, no one, at this point, is holding their breath.

“I don't think anyone really thinks it might be the final deal," DeHaan said.  "I mean, we've been back-and-forth on these potential deals for five months, and we still haven't got an end deal.  So, we'll take it as it comes. That's what we've been doing for five months. We really have no idea on whether or not this will be the final deal. So I think oil markets have been a little bit pessimistic and for good reason."

DeHaan added the Middle East is not only the only location putting pressure on oil markets.

“Ukraine continues to actively attack Russia's oil refineries, so that is going to be probably as much of an issue moving forward as any developments between the U.S. and Iran,” he said.

DeHaan noted with those lower oil prices, fuel prices are moving slightly lower.  But unfortunately, that trend has not reached the Northwest yet.

Washington’s average for diesel increase seven cents this week to $6.16, Oregon’s diesel price climbed from $5.46 to $5.51 a gallon, while diesel prices in Idaho climbed 17 cents to $5.31.

Remember to tune in Tuesday mornings  to Northwest Ag Today for your PNW Ag Network Price at the Pump.

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