Price at the Pump: Steady Economy Means Steady Oil Prices

Oil prices have held steady for the past couple of months, thanks to economic news that seems to balance itself out; for everyone one story pushing oil prices up, we get another pulling those prices down.  However, things have changed to start this week, with oil prices moving up to the mid-$60 range for the first time in weeks. Patrick DeHaan with Gasbuddy.com said last week’s solid U.S. jobs report encouraged oil investors.

“As well as now China and U.S. authorities meeting together to discuss trade, the trade talks ongoing have boosted the optimism that the economy may be starting to grow again in the months ahead, potentially seeing, less of a risk in tariffs if the U.S. and China can come to some agreement,” DeHaan said.

Steady Economy Means Steady Oil Prices

DeHaan said he feels the American economy is in a decent place right now, which is why those oil prices moved higher to start the week.  DeHaan added he expects that stability to stick around for the foreseeable future.

“I don't really see any reason that oil prices would break out and go above $70, not really a whole lot of reasons that oil would go down below about $60-$58 a barrel," DeHaan noted.  "So, I think we'll continue to see prices relatively range bound unless there are, you know, seismic shifts. In the global economy or tariff policy, that is one of the things we'll be watching for this summer.” 

Diesel Prices At Lowest Levels In Nearly Four Years

DeHaan added now that the eastern half of the country is in hurricane season, that could impact oil prices, especially if a strong storm hits key locations.  When it comes to fuel prices, DeHaan noted diesel prices are at the lowest levels reported since October 2021, as gas prices are around $3 per gallon, nationally.  As of Tuesday morning, West Texas was trading higher around $65 per barrel, while Brent Crude was up to $67 per barrel.

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