Price At The Pump: Oil Prices Show Little Movement

Patrick DeHaan with Gasbuddy.com says oil prices are holding fairly steady, thanks to producer/consumer balancing act. He noted over the weekend, OPEC met and announced plans to increase oil production in October by roughly 180,000 barrels per day. But DeHaan pointed out the global economy is doing a good job absorbing the extra oil.

“OECD [Organization for Economic Co-operation and Development] countries who report oil inventory data have only seen modest increases in overall oil supplies," DeHaan said. "So, it does look like as OPEC has increased oil production, the market through increased consumption has been absorbing a lot of it. But for now, I think the additional increase from OPEC will likely keep oil prices in that low $60 a barrel range."

Gas Prices Expected To Dip

DeHaan said he expects gasoline prices to drop in the coming weeks, not only because of the increased amount of oil, but the transition in the U.S. to cheaper winter blends of fuel. When it comes to diesel prices, DeHaan expects the opposite to occur.

“ As we see farmers now starting to harvest their crops, we could see diesel demand go up, and that could contribute to higher diesel prices in the weeks ahead," DeHaan said. "And as well as getting closer to winter weather, we'll likely increase heating oil consumption. Heating oil and diesel, essentially the same product. So that's something that will likely put upward pressure on diesel prices in the weeks ahead.”

In early Tuesday trade, both West Texas and Brent Crude were trading higher, with West Texas around $62 a barrel, and Brent trading close to $67 per barrel.

Remember to join us Tuesday mornings during NW Ag Today for your PNW Ag Network Price at the Pump.

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail glenn.vaagen@townsquaremedia.com