Oil prices rose today on the news that European diplomats had reached a preliminary agreement to issue new economic sanctions on Iran. Progress on sanctions had been held up by the envoys from Greece, who have now dropped their objections. While debate on the specifics of the sanctions is ongoing, all countries in the EU are resolved to proceed.

Two weeks ago, debate over these new sanctions on Iranian oil prompted to government in Tehran to threaten to close the Strait of Hormuz. The threat was promptly backed up by a 10-day series of war games and the tests of some new weapons system.

The Iranian government has yet to respond to this latest news, but this move by the EU is sure to increase tension even further.

That’s the word from Wright Express (via Automotive Fleet).

In a new report from Wright Express (WEX), the company said fuel prices are as low as they’re going to get and are likely to rise in the coming weeks. The company said experts believe that despite current economic woes and reduced demand, fuel prices will remain strong for the rest of the year.

Retail gasoline prices dropped more than 25 cents during the month of September, but WEX said some experts believe prices have hit bottom. Last week, wholesale gasoline prices were at $2.50-$2.70 per gallon, but the week ended with some markets back above $3.00 per gallon.

We have been watching the wholesale market closely, and we can see the apparent firming of prices. Check out the CME chart of wholesale gasoline futures.

The subject near and dear to my heart was mentioned briefly in the Republican candidate debate on Wed. night.

Michelle Bachmann noted that gas was $1.79/gal when Obama took office, and she says it’s possible to get back there. (News Flash Rep. Bachmann: Gas was $0.35 when I bought my first car. Kept hoping we would get back there, but..)

Don’t forget the day that President Obama took office, gasoline was $1.79 a gallon. It’s entirely possible for us to get back to inexpensive energy.

Gov. Huntsman from Utah said we are paying for more than just the gas of gas when we fill up our tanks. The price includes tax shipping and handling, so to speak.

When you add up the cost of troop deployments, when you add up the cost of keeping the sea lanes open for the importation of imported oil, the bulk and distribution and terminaling costs (ph), it’s $13 a gallon, so says the Milken Institute.

All agreed $2 gas would be better for everybody and better for the economy.

Get real people! $2, $3, $4 gas at a price over which we have no control or guarantee! I’d just like to know what it will be so I can budget and plan the rest of my life. Let’s hedge.

So much for Obama’s Strategic Petroleum Reserve move!

As PumpGirl noted, oil prices moved higher, perhaps in line with the (modestly) positive economic news from the ADP jobs report.

Meanwhile, gasoline futures at the NYMEX spiked higher by almost thirteen cents! The entire forward curve for the next year is up by more than ten cents. I looked at the bottom month in the next year and the implied pump price is about $3.50. The average is significantly higher.

For managers who are planning ahead, the window of opportunity to lock in prices may not be open for long.

Reuters reports that in light of record high prices and a mounting EU debt crisis, European demand for oil is quickly deteriorating. Here in the United States, consumer demand for oil is also falling for the first time in months.

Prices have been driving ever higher after months of turmoil in the Middle East have consistently constricted the supply of oil. The military operations in Libya alone are preventing over a million barrels of oil from reaching international markets every day. Industrialized nations are already experiencing slowed growth as a result of energy concerns, prompting OPEC to seriously consider releasing more of its emergency reserves in order to boost supply.

As we begin to enter the summer driving season, we should expect the cyclical rise in crude oil prices. Amidst growing uncertainty and rising prices, now would be an ideal time to take advantage of fuel price protection programs.