Oil and gas prices started dropping this week following news that the US and Iran agreed to a two week ceasefire. While markets initially rallied on hopes of de-escalation, the truce remains fragile, with prices showing volatility as both sides report ceasefire violations.
Anyone hoping to see a quick drop in gas prices, may be disappointed.
Patrick DeHaan, head of Petroleum Analysis at Gas Buddy explains why.
"For those in Buffalo, we are going to be making the transition to the summer blend next week and depending on what is going on with the price of oil, you may or may not see that changeoverimpacted in your pump price," he said.
The average price of regular gasoline in Buffalo is $4.15 a gallon, as of Friday. That's up 17 cents in the past week.
DeHaan said as long as the Strait of Hormuz remains in a de facto closed position, oil priceswill slowly rise.
He added that it is almost impossible to make predictions because no one knows what is going to happen.
Buffalo and other areas of the Northeast are among the last areas of the country to makethe switch to the Summer blend of gas.
"It's because you're among the last to get warmer weather," he said. "It's a progressive switchover from South to North and West to East."
President Trump did issue a partial waiver allowing for a less stringent type of Summer gasoline, so the impact won't be as significant compared to previous years. But with oil prices swinging wildly, DeHaan said its hard to know if drivers will notice a price difference.
"The oil markets are like a pendulum, swinging wildly all over the map."
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Buffalo area gas stations are transitioning to a Summer blend of gasoline next week, a more expensive fuel
Buffalo area gas stations are transitioning to a Summer blend of gasoline next week, a more expensive fuel
