News

Fuel prices expected to go up in 2017

An economist says fuel prices in 2017 are likely to go up.

Wally Tyner, an energy economist from Purdue University says OPEC recently agreed to cut crude oil production by more than one million barrels per day next year and resulting higher fuel prices would increase farmers’ inputs.

His advice for farmers who buy their fuel in bulk is to lock in fuel prices early.

“Crude oil today is $54.00 per barrel and it may go up to $60.00 toward the end of next year IF OPEC is able to hold. If they’re not, it doesn’t matter when you buy it because it’s going to be fairly flat. But there is some likelihood that they will be able to hold this. So we’ll see, but I would buy sooner rather than later,” says Tyner.

Tyner tells Brownfield the cut in crude oil production might bring the price of crude oil up to $60-dollars a barrel through at least the first quarter of 2017.

“If that holds, then we can expect crude oil prices to maybe go up to $60.00 per barrel, and that means gas prices go up” says Tyner

Tyner says current market conditions could bring the price of gasoline to a range of $2.25 to $2.55 per gallon next year – somewhat higher than this year, but not nearly as steep as 2014, when the national average was more than $3.00 a gallon.

Audio: Wally Tyner, Energy Economist, Purdue University