CHICAGO, Ill. (RFD News) — Diesel prices are about 20 cents higher than they were this time last week as the latest developments in the Middle East reignite uncertainty in global oil markets.
Patrick De Haan with GasBuddy said the uncertainty extends beyond Iran.
“Quite a bit of uncertainty over what things are going to look like here in the weeks ahead and how long the escalations will continue. Then also that wild card of Russia’s refineries being attacked and, of course, hurricane season all playing into a bit of volatility that suddenly has returned globally.”
Oil prices peaked earlier this year in April, and De Haan said it’s anyone’s guess how the rest of the year will play out.
“We’re still kind of actively seeing escalations. President Trump warning today that he is going to toll ships going through the strait at 20 percent, which would be a massive tax on oil and refined products through the strait. So, there’s a lot of risk, and that’s building in the backdrop. That could continue to weigh negatively, sending oil and refined product prices up sharply. And how Iran retaliates could also be impactful, whether they attack refineries in the Middle East, whether the strait is closed or open. Just a lot on the table; impossible to know how everything’s going to eventually jive.”
The national average for diesel is holding around $5 this morning. At this time last year, it was $3.72.
