1 hr ago
US Diesel Prices Top $6 as Iran War Squeezes Supplies
Diesel is the fuel used by many trucks, trains, ships, farms and construction machines.
Its average price in the United States has passed $6 per gallon for the first time.
A war involving the United States, Israel and Iran has disrupted some oil shipments.
The Strait of Hormuz, an important oil route, has been especially affected.
Russian refinery problems and limits on diesel exports have reduced supplies too.
China has also restricted some fuel exports.
US diesel stocks are lower than usual, even though American refineries are producing more fuel.
Businesses are paying more to move goods and run equipment.
If high costs continue, shoppers could eventually pay more for food, furniture and other products.
The US national average diesel price surpassed $6 a gallon on Friday, according to GasBuddy.
AAA reported an average of $5.98 a gallon, up 61% from $3.71 a year earlier.
The conflict involving the US, Israel and Iran has disrupted oil shipments through the Strait of Hormuz.
Russian refinery disruptions, Russian diesel export restrictions and China’s fuel-export limits have tightened supplies.
US diesel inventories were about 13% below the five-year average, increasing pressure on businesses and potentially consumer prices.
- Who
- US consumers, businesses and fuel markets are affected; the conflict involves the United States, Israel and Iran.
- What
- The US average diesel price crossed $6 per gallon for the first time as global fuel supplies tightened.
- Where
- The price increase is in the United States, while supply disruptions affect the Strait of Hormuz, Russia, China and global markets.
- When
- The milestone was reported on Friday; AAA compared the price with levels one year earlier.
- Why
- The conflict, disrupted oil shipments, Russian refinery and export problems, China’s export restrictions and low US inventories have reduced or tightened fuel supplies.
Key facts
- US diesel average
- Above $6 per gallon, according to GasBuddy
- AAA diesel average
- $5.98 per gallon on Friday
- Annual increase
- 61%, from $3.71 a gallon a year earlier
- Brent crude settlement
- $107.63 a barrel on Friday
- US diesel inventories
- 106.3 million barrels, about 13% below the five-year average
- Diesel crack spread
- A record $112.17 a barrel on Thursday, according to LSEG data
- August diesel price increase
- 24.1%; the Labor Department said it accounted for more than one-third of the latest increase in goods producer prices
Sources
Related news
US Diesel Prices Hit Record High Amid Iran War
Diesel Tops $6 as Brent Oil Surges Ahead of Midterms
US Fuel Prices Hit Labour Day Record Amid Iran War
Refinery Attacks in Russia-Ukraine War Trigger Global Fuel Price Surge
Iran War Fallout Sends Diesel Forecast 93 Cents Higher
Petrol Prices Steady as Crude Climbs Amid US-Iran Hormuz Deadlock
Brent Crude Surges Above $105 Amid Middle East Supply Fears
Houthis Seize Yemen’s Mocha, Raising Fresh Red Sea Shipping Risks
India Puts Global South at Centre of BRICS Summit
