Price At The Pump: With No Iranian Peace Deal, Oil Prices Climb

Oil prices continue to march higher.  As of Tuesday morning, West Texas and Brent Crude were both higher by more than 3%, with WTI trading around $100 per barrel, while Brent was closer to $111 per barrel.

Diesel Drops While Gas Climbs

Patrick DeHaan with Gasbuddy.com noted gasoline prices have moved higher because of that increase in oil, to $4.06 nationwide, a six-cent increase from this time last week.  But, DeHaan pointed out while gasoline prices were climbing, diesel prices were dropping.

“Diesel prices are getting out of the winter," DeHaan said.  "When heating oil demand generally is elevated, we're seeing less consumption for diesel. That's the good news. And we've seen that really falling across most states. Kind of an inverse. Gasoline's peak season is summer. Diesel's is winter. And as we get away from that heating oil consumption, we're seeing a slight dip, but it may be a bit of a head fake. I do expect, as I mentioned in the week ahead, diesel prices will likely round the corner and start heading higher following gasoline and oil prices to the upside.”

U.S. Continues To Export Oil

DeHaan noted there is reason for a glimmer of hope this morning, as Iran has sent a proposal to the U.S., suggesting the possibility of opening the Strait of Hormuz.

In a show of the turbulence generated from this war, DeHaan noted the United States has increased its oil exports.

“We've seen a second straight week of record-setting exports, DeHaan said.  "We've never seen this amount of oil and refined product leaving the United States. Just in the last week, 90 million barrels of oil and refined products leaving the shores of the United States for the global market. That certainly could put more pressure on prices here in the United States in the weeks ahead if oil exports continue to remain elevated.”

Expectations For The Weeks Ahead

Speaking of pressure on the United States, DeHaan said pressure from the international community will most likely increase in the coming weeks, as Europe warns of jet fuel shortage, and fuel prices increase across the globe.

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

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