Price at the Pump: Oil Prices Higher As War With Iran Continues

Oil prices continue their see-saw movement, as prices swung higher to start the week.  After moving higher for most of Monday's trade, West Texas and Brent Crude were both slightly lower in early Tuesday trade.  However, both remain well above the $100 per barrel mark.

While oil prices move higher, prices at the pump slipped marginally this week for both gasoline and diesel.  However, Patrick DeHaan with Gasbuddy.com says don't get used to this trend.

“Product prices falling as refineries finish maintenance and boost output of gasoline, diesel, and jet fuel," DeHaan said.  "But yeah, still a much higher amount of volatility in oil markets as we continue to digest the latest news between the U.S. and Iran.”

The latest news saw President Trump call off a planned attack on Iran Monday, at the request of Gulf states.

And as Tuesday marks the 80th day of military action between the U.S. and Iran, the United States has become a significant exporter of oil, trying to address the shortage created by the closure of the Straight of Hormuz.  Could the United States find itself in another predicament if it continues to export oil as the conflict drags on?

“The longer the Strait remains closed, the more countries buy U.S. oil and other products, and the more that we are going to see our supplies draining," DeHaan said.  "So absolutely, I mean, there does come a push to the situation.  It can't go on forever. As we continue to see our products leaving the United States, eventually we'll put more and more pressure on our prices moving forward.”

DeHaan said not only are exports of U.S. crude oil and refined products at record setting levels, but domestic inventories are also declining.

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