Oil Prices Are Moving Lower, But The Reason May Surprise You
The turbulent see-saw that is oil prices continues to move back and forth. Over the past week, West Texas Crude prices have moved lower, by slight amounts. Pattrick DeHaan with GasBuddy said the reason those prices have moved lower may have many people scratching their head.
“Good and better than expected economic news is raising concerns that the Federal Reserve is going to continue raising interest rates, which is going to end up stifling the economy and stifling growth. And for that reason, hotter than expected jobs report inflation numbers that continue to go up and retail sales that are very strong continue to paint the picture that the Fed is going to likely continue raising rates.”
While oil prices have been moving lower, DeHaan noted gas prices across the west coast have been moving higher, thanks primarily to refinery issues in western Washington. But despite gasoline prices moving higher, DeHaan said the price for diesel is dropping nationally, now hovering around $4.48 per gallon; the lowest price reported in nearly a year.
DeHaan added while the economic situation may be improving in China with COVID restrictions being lifted, that’s being overshowed by the U.S. economy.
"You know it's kind of like two issues on the scale the same time. China on one side of the scale watching their economy continue to grow, it's certainly a strong force. But we have many developed countries economies on the other side of the scale and right now rising interest rates are more of a concern of than potential growth in China.”
What’s the expectation of fuel prices in the coming weeks? We’ll we see a return to the record fuel prices from last year?
If you have a story idea for the PNW Ag Network, call (509) 547-9791, or e-mail email@example.com