Price At The Pump: Oil Prices Dip Thanks to “Stability”

It’s easy to get motion sickness watching oil prices this year. This week, however, oil prices have held steady, and even have moved down. Patrick DeHaan with GasBuddy.com noted that oil prices are roughly $10 a barrel lower than they were a week ago, thanks to relative stability in the Middle East.

“So at least for now does look like oil prices have cooled off given those positive developments and gasoline prices are starting to follow as well," DeHaan said. "The national average dipped over the last week, certainly terrific news as motorists head to the road for the holiday for July 4th. In fact, it will be the cheapest July 4th holiday since July 4th, 2021, and gas prices may continue easing beyond that.”

Several Issues Remain For Oil Investors

DeHaan added just because tensions between Israel and Iran have simmered down, for the time being, that doesn’t mean there’s not a host of international issues oil investors will keep an eye on.

“I think demand numbers are starting to be looked at a little bit more here in the U.S. and the developments overseas," DeHaan said. "China demand has been relatively weak still. So, I think some of those are the factors that we'll be staring at over the next couple of weeks. As well as what OPEC may or may not do. And there's been talk from Russia again as well about potentially raising oil production. So, there's a lot to still look at. The Middle East is still active, but I think some of the biggest is how OPEC plans to balance oil production in the months ahead, especially as U.S. trade talks with major partners does continue.”

DeHaan added unless the Atlantic hurricane season becomes extremely active, or some international incident breaks out, he expects oil prices, thus fuel prices, to continue moving lower.