Gas Prices Driven Higher by Oil Prices

(Undated) — Gas prices have jumped recently, driven largely by oil prices. According to GasBuddy Head of Petroleum Analysis, Patrick De Haan, average gasoline prices have jumped for a second straight week as oil prices have climbed back above the $60-per-barrel mark, driven by a tug-of-war between geopolitical risk and soft underlying fundamentals, ongoing tensions involving Russia and the Middle East, along with lingering concerns about potential supply disruptions. He says new sanctions on Iran’s oil are making it more difficult for those barrels to reach the market, thereby tightening supply. Meanwhile, the major winter storm that sent temperatures plunging is also likely to impact refineries, causing disruptions and reduced output. De Haan says diesel prices have jumped as colder weather boosts demand for heating oil, a combination that could keep both gasoline and diesel prices moving higher in the week ahead.