Diesel Nears $5.34 a Gallon as Wars Strip 10% of Global Trade
Updated
Updated · Marketplace · Jul 30
Diesel Nears $5.34 a Gallon as Wars Strip 10% of Global Trade
3 articles · Updated · Marketplace · Jul 30
Summary
$5.34 a gallon diesel prices are running about 50 cents below AAA’s record, with analysts warning they could climb toward the $5.85 all-time high.
Iran-related export losses, Ukrainian strikes on Russian refiners, Russian curbs and Houthi damage to a Saudi Aramco refinery have sharply tightened supply; S&P Global says Russia alone accounts for a 10% loss of globally traded diesel.
Analysts say diesel has become the most inflationary fuel because trucking, shipping, farming and construction pass higher costs through quickly across the economy.
The squeeze looks persistent, extending a broader refined-products crunch already marked by low refining activity, thin inventories and record-strong margins.