1 day ago
Iran War Fallout Sends Diesel Forecast 93 Cents Higher
A government agency has raised its diesel price forecast by 93 cents compared with its estimate before the war.
The global market for distillate, which includes diesel fuel, is tight.
This shortage has made diesel more expensive in the United States.
Higher prices are encouraging U.S. companies to sell more distillate to other countries.
That leaves less distillate available for people in the United States.
The agency expects global production to stay below last year's level.
It also expects U.S. diesel supplies to remain low.
Because supplies may stay tight, diesel prices are expected to remain high.
The diesel price forecast has risen 93 cents from its pre-war estimate.
Tightness in the global distillate market has pushed U.S. domestic prices higher.
Higher prices have encouraged U.S. exporters to ship more distillate abroad.
Those exports are further limiting distillate available in the United States.
Global distillate production is expected to remain below last year's levels, keeping U.S. inventories low and prices high.
- Who
- A government agency and U.S. exporters are identified in the report; the agency is not named in the provided text.
- What
- A diesel price forecast increased by 93 cents, while tight global distillate supplies are expected to keep U.S. prices high.
- Where
- The effects concern global distillate markets and diesel supplies in the United States.
- When
- The forecast change is measured against the pre-war estimate; the coming months are referenced for future production levels.
- Why
- Global distillate-market tightness, increased U.S. exports, and expected production below last year's levels are limiting domestic supplies.
Key facts
- Forecast change
- Diesel forecast is up 93 cents from the pre-war estimate.
- Market condition
- The global distillate market is tight.
- Domestic effect
- U.S. diesel prices have risen.
- Export effect
- Higher prices have encouraged U.S. exporters to ship more distillate abroad.
- Production outlook
- Global distillate production is expected to remain below last year's levels in the coming months.
- Inventory outlook
- U.S. diesel inventories are expected to remain low.
- Price outlook
- The agency expects prices to remain high.
Sources
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