Price At The Pump: U.S./Iran Push Oil Prices Higher Again

No surprise, as oil prices jumped higher to start the week, with both West Texas and Brent Crude increasing by more than 2.5% in Monday’s trade, and another 2% in Tuesday’s action.

“The U.S. attacking rocket launchers in the Strait of Hormuz, or at least nearby the Strait, is causing some concern after this one-month essential pause of attacks has been broken," said Patrick DeHaan with Gasbuddy.com. "The market is again on edge that there could be new attacks in the days ahead as Iran has promised escalation or response.”

What Does Canada Mean For Fuel Prices?

But, Iran is not the only international issue for the United States these days. DeHaan said while the trade war with Canada isn't impacting oil prices now, the trade dispute, at the very least, is not good news.

“It's not really impactful to oil prices, at least for now," said DeHaan. "There's not a real risk yet of how potentially that trade shakeup could really impact things. Obviously, Canada is a major producer and exporter of oil to the United States. So that's certainly something to keep an eye on. But for now, some of the comments made by Doug Ford are a bit worrisome, especially on the possibility that Canada could cut potential electricity sent to the United States, but for now it's very much a wait and see approach.”

Several International Issues For Oil Investors To Digest

DeHaan added the oil market could easily become “a bit nervous” about the issue with Canada, because the nation is the United States’ largest foreign source of crude oil.

And, unfortunately, completing the hat trick, is ongoing strikes between Russia and Ukraine, which DeHaan said is having an impact on refined products in Europe, which is impacting prices and availability globally.

Remember to join us Tuesday mornings for your PNW Ag Network Price at the Pump.

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