Price At The Pump: Tariffs Not The Key Issue Driving Oil Prices

After months of turbulence, oil prices have been relatively quiet over the past week-plus, hovering around the low-$60 per barrel mark for West Texas Crude, and mid-$60s for Brent.  Patrick DeHaan with Gasbuddy.com says for the first time in months, tariffs and trade are not the issues impacting oil and fuel prices.  He said one of the topics expected to impact oil prices, nuclear talks between the United States and Iran.

“[Another] one of the recent developments, also Kazakhstan, an OPEC producer, has essentially said that it cannot abide by low quotas.  Kazakhstan, looking to boost oil production and they may in the next few weeks, or even months, become a little bit more open with their inability, or desire to produce their quota.  Meaning that Kazakhstan is looking to produce more oil and that has oil markets a little rattled.”

DeHaan added this quota challenge may lead to Kazakhstan leaving OPEC, but only time will tell.

DeHaan added while Middle East issues are currently top of mind for oil investors, tariffs and trade remain a concern.  He noted at this point, tariffs are “not an active threat to oil markets, right now”.

“The price of gasoline and diesel relatively modest for this time of year," DeHaan noted.  "We really haven't seen much of a seasonal rally in prices. A lot of that again due to the policies that have been implemented by the Trump administration.  Of course, most infamously the tariff situation that's now been created, that has really muted global markets. Which are now becoming more worried with the possibility of a slowdown.”

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