EDMONTON — Gasoline and diesel prices are continuing to rise across North America as several international conflicts put pressure on crude oil and refined fuel markets, though a weekend easing in hostilities is offering some hope for motorists.
GasBuddy head of petroleum analysis Patrick De Haan says escalating conflict between the United States and Iran, renewed Houthi attacks on shipping in the Red Sea and Ukrainian strikes on Russian oil refineries have combined to push crude oil and fuel prices higher.
“Average gasoline and diesel prices rose in nearly every state over the last week,” De Haan said, adding a weekend pullback in hostilities could moderate the pace of increases at the pump in the coming days.
Oil prices fell sharply to begin the week after the United States and Iran paused their latest exchange of military strikes.
Washington held fire over the weekend following 13 consecutive days of strikes, while Tehran said it would halt retaliatory attacks against countries in the region.
Iran has also reported talks with Oman aimed at establishing mechanisms for safe passage through the Strait of Hormuz.
Shipping through the strait remains well below levels seen before the conflict, keeping uncertainty over global oil supplies elevated.
West Texas Intermediate crude fell below US$84 per barrel in early Monday trading, while Brent crude dropped to around US$90. Brent briefly traded above US$102 last week as geopolitical tensions intensified.
The market is also watching developments in the Red Sea, where attacks involving the Houthis have added concerns over another major shipping route for global energy supplies.
Ukraine’s continued strikes against Russian oil refineries are creating another source of uncertainty for refined fuel supplies.
GasBuddy says the combination of geopolitical risks has been driving gasoline and diesel prices higher across much of North America as crude oil and refined product markets react to developments overseas.
The weekend decline in oil prices could eventually provide some relief at the pump if lower crude prices persist.
De Haan says fuel prices are expected to remain elevated for now, with the direction of prices in the coming week heavily dependent on whether geopolitical tensions continue to ease or escalate again.
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