Price At The Pump: Oil Prices Move Higher Following Strikes On Iran, Fuel Prices Expected To Follow

It should come as no surprise, but after the United States and Israel targeted locations in Iran this weekend, killing key leadership, oil prices moved higher, by quite a bit.  As of Tuesday morning, West Texas and Brent Crude are both higher, in the upper-$70 and low-$80 per barrel range respectively.

“That is the highest level since summer of last year. And as a result of oil jumping, we're also seeing big increases in the price of gasoline, diesel, jet fuel," said Patrick Dehaan with Gasbudddy.com.  "All of those likely to jump here in the days ahead. The national average could rise anywhere from 10 to 25 cents over the next week or two...And for diesel, even a bit more ominous. Saudi Arabia shutting down a major refinery, a major producer of diesel because of a drone attack. Diesel prices now skyrocketing by 40 cents a gallon."

As far as those local gasoline prices are concerned, Washington’s average is $4.36 a gallon, Oregon’s rate is $3.92 a gallon, while motorists in Idaho are paying on average $2.97 a gallon.

DeHaan noted the uncertainty of the next steps makes it difficult to determine where fuel prices are going and how long they are going to stay there.  But he did offer some potentially encouraging words.

“Consumers will likely to be faced with increased gasoline, diesel, and jet fuel prices here in the days ahead," DeHaan said.  "But if the situation reverses for the better, oil prices may eventually go down just as quickly as they went up.”

Listen to our Price at the Pump Podcast for insight on how OPEC nations and other Middle East countries have responded to this weekend’s attacks.

Remember to join us Tuesday mornings during Northwest 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