Price at the Pump: Two Steps Forward, Three Steps Back

The seesaw action of oil prices continues, as West Texas and Brent traded slightly higher in Tuesday morning's action; $62 and $65 per barrel respectively.  Patrick DeHaan with Gasbuddy.com said oil prices remain challenged compared to where they started the year.

“A lot of that is because of the continued increase in OPEC oil production and economic uncertainty," DeHaan said.  "To your point, it seems like one week we do make two steps forward and then we may go three steps backwards.  So, a lot of that due to economic uncertainty, trade policy from the U.S., which has been shifting constantly so far this year and of course countries outside the U.S.”

DeHaan said some of the biggest issues pulling oil prices include the sluggish Chinese economy, Russia-Ukraine, and Iranian nuclear talks.  DeHaan added in the coming weeks and months, there is the potential that regular gasoline will continue to drop in price and may move below the $3-per-gallon mark nationally.  He added it’s not just gasoline that’s expected to continue to drop.

Fuel Prices Continue To Move Lower

"The price of diesel, now at about $3.50 a gallon, remaining within about five cents of its lowest level really since the pandemic as well," DeHaan said.  "So not only consumers getting the benefit from lower gas prices, but also truckers, logistics companies, shipping companies, all seeing the benefit of lower diesel prices and also jet fuel prices relatively low.  That is helping to offset the potential for an economic, or at least airline slowdown later this year.  So, across the board decreases energy prices remaining far more affordable this year compared to last year.”

What impact did Moddy’s recent cut of the U.S. credit rating have on the oil sector?   To find out, listen to our entire Price at the Pump podcast with DeHaan:

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

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