Price At The Pump: Tariffs Remain The Main Driver Of Oil Prices

Iran, Venezuela, peace talks between Ukraine and Russia, and the struggling Chinese economy, there's lot for investors, specifically oil investors to focus on these days.  Patrick DeHaan with GasBuddy.com said that’s been the pattern for the oil community for the past two months.

“Essentially, [it’s a] tug of war with some of those headlines which could pull oil prices up being kind of held in check by those factors that could pull oil prices back down.  With that oil today up about $1 per barrel, on hopes that Trump may soften his stance on tariffs. He has suggested, now, that there may be less tariffs implemented on April 2nd.”

West Texas Crude up slight in early Tuesday trade, around $69 per barrel, while Brent Crude was also in positive territory, trading around $74 per barrel.

When it comes to fuel prices, DeHaan noted gasoline prices inched up over the past week, moving higher for the first time in over a month.

"The price of diesel actually did decline in the last week," DeHaan added.  "That's likely because we are starting to get into warmer weather and that is reducing demand for things like heating oil.” 

When it comes to trends into the future, DeHaan says it’s hard to predict where oil prices are going, thanks to ongoing international issues leading to volatility.  When it comes to fuel prices, he expects gas to seasonally rise, but at a slow pace.

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