Price At The Pump: Uncertainty Pushing Oil Prices Lower

Oil prices continue their downward trend.  West Texas Crude was down to $65 per barrel in Monday’s trade, while Brent Crude was trading around $66 per barrel, a nearly 2% decrease for both.  Patrick DeHaan with Gasbuddy.com says not only have oil prices moved low, but fuel prices, both diesel and gasoline, have dropped for the 3rd straight week.

“Given the time of year, as we get into spring is rather rare," DeHaan said.  "In fact, the last time the average gas prices in the U.S. were this low in March, you'd have to go back to the pandemic [2020], and it’s probably going to be another couple weeks as we struggle through the uncertainty over whether or not the tariffs on Canada will be enacted on April 2, as now President Trump has suggested.  However, his Energy Secretary today highlighted that President Trump may not move forward with tariffs on Canadian oil and refined products in April.”

DeHaan noted this is a very active time for oil investors, between the on-again-off-again tariffs between the U.S. and Canada & Mexico, talks between Russia and Ukraine and OPEC’s decision to increase production.  And that’s not all he’ll be watching.

“I think most certainly the economic uncertainty brought on by all the various policies that Trump is implementing, as well as government downsizing, 10s of thousands of government jobs being eliminated, that's certainly something to keep an eye on," DeHaan said.  "There’s just a lot of tremendous economic shifts from the White House in a very short period.  And a lot of uncertainty over whether or not these policies will stay, or how long they'll stay is having a major impact on the stock market and certainly something that I'll be watching here in the weeks ahead.”

DeHaan added the ongoing economic struggles in China will be another issue he will keep a close eye on.  For more from DeHaan, listen to our Price at the Pump Podcast:

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