Oil supply concerns could wipe out expected decline in gas prices
Gas prices have fallen in Pittsburgh in the last week, but the break motorists were expecting may not be coming.
“With a muted response from OPEC to President Trump’s exhortation via Twitter that OPEC do something to reign in high oil prices, we may see energy markets rally as concerns grow that Iran’s sanctions effective in November may pose more a challenge to global supply than anticipated,” said Patrick DeHaan, head of petroleum analysis for GasBuddy.
“Oil prices jumped to fresh highs last night on reaction to the chilly reception to Trump’s concern, with several oil ministers downplaying the rise in oil prices,” he said. “Moving forward, with Iran’s oil essentially out of reach, gas prices may not see the typical decline we had been expecting as recently as the last two weeks as new concerns emerge about the tightrope balance some oil producing countries are hoping for – pushing supply down as global demand rises.
“That’s not going to be good news for motorists.”
In Pittsburgh, gas prices fell 1.2 cents per gallon in the past week to an average of $3.11, according to GasBuddy’s survey of 731 stations. That’s unchanged from a month ago, and 28.2 cents per gallon higher than a year ago.
The national average is down 0.8 cents per gallon to $2.83. The national average is also unchanged during the last month, and is 28.8 cents per gallon higher than a year ago.
Brian Rittmeyer is a Tribune-Review staff writer. You can contact Brian at 724-226-4701, [email protected] or via Twitter @BCRittmeyer.