Oil Prices Moving Higher Ahead of Iran Sanctions

Fuel prices typically start to fall as we transition into the cooler months of the year. But as all year long, 2018 is anything but typical. Oil prices are moving higher on the international stage, not because of anything currently happening, but what is yet to take place. Dan McTeague with GasBuddy.com, said the concern is that OPEC and non-OPEC nations don’t have the spare capacity to make sure growing demand in met in the immediate future.

“The U.S. trade sanctions and call it what it is, a trade embargo, which takes effect in a little under 33 days. That’s sending markets upwards with the belief that the supply issue will definitely be impacted.”

And on top of that an American economy that’s growing, you have a receipt for higher oil prices. The United States has great increased oil production over the past couple of years, which has helped cushion the world market when minor disturbances were reported. But McTeague said the record 11.1 million barrels a day produced by the U.S. won’t make up for what Iran currently contributes.

“But it’s not enough to make up for what many are suggesting a 1.5 million barrel a day loss [from Iran].”

As far as the lowest local prices we could find: