Diesel at 5-Year Highs: Why This Surge Isn’t a Blip
Diesel prices are near record highs, and this spike may have more staying power than 2008 or 2022. John Kingston breaks down what’s driving the run-up: refinery outages, Russian supply hits, maintenance season and heating oil demand. For fleets, brokers and shippers, the big issue isn’t just the headline price. It’s how long this lasts […] The post Diesel at 5-Year Highs: Why This Surge Isn’t a…
Diesel prices have reached record highs, with potential for prolonged high prices unlike previous spikes in 2008 or 2022, according to John Kingston. The refinery outages, Russian supply disruptions, seasonal maintenance, and increased heating oil demand are contributing factors to the surge. For fleets, brokers, and shippers, the main concern is not just the high price but its duration and when fuel surcharges will no longer cover the additional costs, especially for empty miles.
Ultra-low sulfur diesel futures on the CME settled at record highs, surpassing 2008 levels and nearly matching a short-lived peak following Russia's invasion of Ukraine. Diesel prices in the East Coast and Northeast regions have dropped to historically low levels due to regional inventories, while California has seen prices exceed $7 per gallon, despite being higher than the rest of the country due to taxes and clean-fuel mandates.
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