Price at the Pump: Oil Prices Continue Wild Ride

Oil prices have dropped roughly $10 a barrel in the past week, during what Patrick DeHaan with Gasbuddy.com has called a tumultuous week.  He noted a lot of this turbulence and unease is happening because of President Trump's tariffs coming in heavier and more significant than expected, increasing concerns of a global recession or slowdown.

“In addition OPEC announced last week that it would be restoring oil production at a faster than expected pace, oil prices also selling off on that, but late breaking developments now indicate the White House may be open to a pause in tariffs, that after the oil prices have plummeted and the stock market has sold off, entering a bear market," DeHaan said.  "So, just a lot of volatility here in energy markets as we try and digest all of what's happening.”

Monday afternoon, President Trump snuffed out those rumors of tariffs being paused.  While oil investors try to determine the Administration’s next steps, DeHaan says many consumers are enjoying relief at the pump.

“Gasoline and diesel price have been modestly lower than last year," DeHaan noted.  "Oil prices had been dipping prior to the tariff discussion because of OPEC’s oil production restoration that was starting in April.  So even if we remove tariffs from energy prices, gasoline and diesel prices already quite a bit below last year.  That's certainly good news for the economy.  Average gas price is $0.36 lower than last year's diesel prices edged up in the last week, but still stand at about $3.58 a gallon.”

For more of our conversation with DeHaan and his thoughts on how the Chinese economy is impacting fuel prices, listen to our entire Price at the Pump Podcast:

Remember to join us Tuesdays for your PNW Ag Network Price at the Pump.

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