Oil prices have been on a rollercoaster ride ever since the United States and Israel started bombing Iran. Initially, oil prices moved higher, but last week, oil prices dipped after President Trump paused attacks on Iran.
But since those have resumed, oil prices have again moved higher. It should come as no surprise that fuel prices are moving higher because of increased oil prices, but what has perhaps surprised many in the farming world is how steep the jump has been for diesel prices, which, in Washington state, are up 14 cents this week to $6.50 a gallon.
“Diesel prices have never been higher in the areas of Washington state. Certainly, seeing some of those record-setting levels in California as well, where some cities are now getting close to $8 per gallon of diesel. So certainly, some lofty diesel numbers, increases and slowed, but I do expect them to continue this week. Of course, a lot of that is really contingent on what develops between the U.S. and Iran.”
Patrick DeHaan, senior petroleum analyst at Gasbuddy.com, says that as far as the future of oil and fuel prices, it’s hard to predict where prices are going. If the United States and Iran can reach some kind of agreement in the coming weeks, he thinks prices will start to move lower.
But if President Trump sends in ground troops?
“It certainly would inflame the situation and likely push oil prices up, but it depends on the degree and what any campaign, any ground troop campaign, may look like. I think that’s going to be the details. Will it ultimately end or improve the situation? I think there is a possibility that sending ground troops in may result in a faster conclusion, although it just depends on the manner in which ground troops may be utilized. So, I think there are a lot of open-ended questions there. Ultimately, that may lead to a faster resolution to the situation, but it also has plenty of risk with it as well.”
DeHaan says either way, he expects the increases in oil and fuel prices to slow in the coming weeks.