Oil Prices Remain Low, But Diesel Prices Remain Elevated

Many were concerned that sanctions against Iran put in place earlier this month were going to push oil prices higher. In response, OPEC decided to increase oil production to help compensate. Those sanctions against Iran didn’t squeeze oil supply, and with OPEC’s action, we now have a glut of oil on the world market. That elevated level has pushed oil prices to very low levels, around $50 a barrel to start the week.

Dan McTeague with GasBuddy.com said the anticipation is oil prices are going to stay low for the foreseeable future. He added even if OPEC members want to trim production to force oil prices higher, they can’t do so without hurting themselves in the long run.

“Saudi Arabia has been caught with the murder of journalist Jamal Khashoggi, and as a result they are not going to do much to offend the U.S., or certainly the President who seems to be taking more of a ‘hear no evil, see no evil, speak no evil’ approach to what’s happened.”

The massive snow storm rolling across the Midwest and New England area could impact oil prices, but more likely will hit diesel users in the coming days.

“Demand for diesel and demand for home heating fuel will continue to rise, as will natural gas.”

Despite that demand, diesel prices have pulled back slightly in the past week to $3.19 a gallon nationally, a decrease of three cents. Washington’s average decreased two cents to $3.53 while Oregon’s rate fell three cents to $3.37 a gallon.

Here are some of the lowest diesel prices we could find across the Inland Northwest: