While crude oil prices dropped this week following news of a tenuous ceasefire in the United States and Israel’s war with Iran, gas prices continue to rise in Minnesota.
AAA reported that the average price of regular gas in Minnesota on Thursday was about $3.74 a gallon. That’s up more than 15 cents a gallon since Monday, and close to 50 cents higher than a month ago.
The average price in Minnesota is 57 cents a gallon more than it was a year ago.
There was significant variation in gas prices across the state on Thursday. AAA reported an average price of $3.80 a gallon in the Twin Cities, and about $3.83 in Rochester. But average prices were about $3.57 in Moorhead, $3.65 in Duluth and $3.68 in St. Cloud.
Prices in Minnesota remain well below the national average of about $4.17 a gallon.
Diesel fuel prices were averaging about $5.13 a gallon in Minnesota on Thursday — up about 25 cents over the past week, and $1.65 a gallon more than a year ago.
The Associated Press reported that crude oil prices climbed back toward $100 per barrel on Thursday. The price for a barrel of benchmark U.S. crude oil rose 5.6 percent after semiofficial news agencies in Iran suggested forces have mined the Strait of Hormuz, the narrow waterway that has been at the center of President Donald Trump’s demands of Iran. Blockages there have kept oil and natural gas stuck in the Persian Gulf, away from customers worldwide.
Brent crude, the international standard, rose 2.3 percent to $96.95 per barrel. It’s still below the $119 level that it briefly reached when worries about the war reached their height, but it remains above its roughly $70 level from before the war.
Given how far apart the United States and Iran seem to be in their demands, upward pressure on oil prices may be “here to stay for a while” according to strategists at the Macquarie Group.
Risks remain for renewed fighting, which could cause customers worldwide to hoard whatever oil supplies they do get. That could itself keep oil off the market, much like actual fighting targeting pipelines or oil tankers.
The Associated Press contributed to this report.
