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US average diesel price crosses $6 a gallon for the first time, GasBuddy says
reuters.com • • business
Key Points:
- The U.S. national average price of diesel surpassed $6 a gallon for the first time, driven by supply constraints from the U.S.-Israeli conflict with Iran and Ukrainian attacks on Russian refineries.
- Diesel is critical for global supply chains and agriculture, and rising prices are exacerbating inflation, impacting consumers and becoming a political issue ahead of the U.S. midterm elections.
- Crude oil futures have surged above $100 a barrel, with Brent crude settling at $107.63 and WTI at $102.48, pushing fuel costs higher amid geopolitical tensions.
- Diesel inventories are 13% below the five-year average, with disruptions in Russian exports and potential impacts from conflicts near Saudi Arabia further tightening supply.
- Analysts warn that record diesel prices will increase costs across transportation and goods delivery, likely fueling further inflation and complicating political dynamics before the November elections.
