U.S. Diesel Hits Record $6.06 a Gallon as Ukraine, Iran Wars Crimp Supply
Updated
Updated · CNBC · Sep 10
U.S. Diesel Hits Record $6.06 a Gallon as Ukraine, Iran Wars Crimp Supply
3 articles · Updated · CNBC · Sep 10
Summary
$6.0556 per gallon became the U.S. diesel average on Friday, the first time the fuel has crossed $6 nationwide; California reached $7.9827.
The jump reflects a refining squeeze from the Ukraine and Iran wars: Russian export curbs, attacks on Gulf-allied refineries, and tanker disruptions through the Strait of Hormuz.
Crude has amplified the pressure, with U.S. oil futures topping $100 a barrel on Thursday after gaining about 20% in September amid escalating U.S.-Iran fighting.
Truckers and farmers are paying about 63% more than a year ago, and analysts say diesel costs are filtering into food, consumer goods, home heating and power prices.
The strain is hard to relieve quickly because about 5 million barrels per day of refining capacity has been shut and U.S. refineries are already running near 98% utilization.