CLEVELAND, Ohio (WOIO) -A week ago, those in the oil and gasoline industry were huddled around computer screens watching crude oil prices inch higher because of a new U.S. and Iranian conflicts.
After President Donald Trump addressed the issue in a speech on Wednesday, the oil industry has taken a collective sigh of relief according to Patrick DeHaan, a petroleum analyst with Gas Buddy.
“Situation is behind us for now and with lower prices now then before the issue started, any impact being paid will soon be over,” DeHaan said.
When the U.S. launched a missile attack that took out Iran’s top military general, the Iranians vowed retaliation and crude oil traded higher. reaching a max last week of $64 a barrel.
The fear was Iran’s retaliation could have come in the form of attacks on Middle East oil production, or shipping routes to get oil out of that region.
Waiting for Iran’s response oil started trading at a high of $64/barrel.
At the time of this article, those prices have dropped back to $59/barrel which, as DeHaan noted, is below where it was trading before the entire incident.
Crude oil is refined to create gasoline, which means when crude oil prices go higher gas prices follow.
“Locally prices in Ohio did rise earlier this week, it was a routine price cycle and didn’t really reflect anything from Iran,” DeHaan said.
With the conflict stabilized in Iran, for now, gas prices should stabilize as well.
The current U.S. average for a gallon of gas is $2.59.
In Cleveland the average is $2.53/gallon.