Analysis Oil Prices Could Jump By Year’s End

Oil prices have remained relatively flat over the past couple of months. That’s thanks to competing economic news. The trade war and uncertainty with China continues to pressure oil and fuel prices lower, while unrest in Iran and other spots around the globe push those prices higher.

However, one analysis thinks we could see oil price spike just before the New Year. And it’s not because of China; Iran; But rather the International Maritime Organization. Martin Fraenkel of S&P Global Platts recently told CNBC IMO2020, which goes into effect in January, will have a big impact.

“Which is going to restrict the amount of sulfur in the fuel oil which is used by vessels all around the world to power ships which are going all around the world. So, the switch from higher Sulfur to lower Sulfur fuel oil and other forms of diesel is going to drive higher refinery runs and greater demand for crude oil in quarter four as people prepare for that. And we believe that’s going to lead to a little bit of a spike in crude oil prices as we get to the year end.”

As far as diesel prices are concerned, the national average for a gallon on diesel dropped one cent in the past week to $2.92 a gallon, Washington’s averaged shaved a penny as well to $3.23, and Oregon’s price held steady this week at $3.12 a gallon.

As far as the lowest local prices are concerned: