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CALGARY — Fuel prices are continuing to climb as global oil markets react to the ongoing Middle East oil crisis brought on by the U.S. war with Iran, according to Patrick De Haan, head of petroleum analysis at GasBuddy.com.
De Haan says oil markets remain highly volatile as traders react to shifting developments tied to the conflict and ongoing disruptions affecting global supply routes.
Oil prices initially eased mid-week amid hopes diplomatic negotiations could reduce tensions and stabilize energy shipments through the Strait of Hormuz, one of the world’s most important oil transit corridors.
However, renewed uncertainty surrounding negotiations and escalating tensions helped push oil prices sharply higher again to begin the week.
“Geopolitical risk premiums remain firmly embedded in the market,” De Haan said, warning consumers could continue seeing rapid price swings at fuel stations in the weeks ahead.
The conflict has disrupted global energy markets for weeks, with concerns surrounding oil infrastructure, tanker traffic and future supply flows continuing to pressure prices upward.
De Haan says diesel markets remain especially vulnerable because of tight refinery capacity and lower-than-normal inventories.
Analysts say diesel prices in particular could continue climbing if refinery disruptions persist alongside geopolitical instability.
Energy analysts say oil markets are expected to remain unstable as traders weigh the possibility of diplomatic progress against the risk of further escalation in the region.
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