Tightening Production, Good Economic Conditions Pushing Oil Prices Higher

After a slow start to 2019, oil prices have taken off. Since Christmas WTI oil prices have increased from $42 per barrel to nearly $66 a barrel. And Dan McTeague with GasBuddy.com said foreign producers tightening production is not the only reason oil prices have moved considerably higher over the past couple of months.

“I think rebounding economies, a strong robust U.S. economy, internationally, we’re not doing as bad as many people had thought. There were some at the beginning of the year who thought that the world would be coming to an end, economically, that didn’t happen, and that’s not likely to happen.”

McTeague said the upward movement of oil prices, and the looming summer drive season will push gasoline prices considerably higher in the coming weeks. As far as diesel prices are concerned, he says those continue to show resilience and strength compared to any point we’ve seen.

“Now we understood last year that diesel on the markets stayed slightly ahead of gasoline prices. Traditionally this time of year, we see diesel prices sink, that’s really aproxie to the warmer weather, but this year, like last year, the approaching IMO 2020 (all maritime vessels have to run on low sulfur diesel) is the main reason why oil, more importantly diesel prices continue to be about four-five cents a gallon higher then they were at this time last year.”

As far as local diesel prices are concerned: