Energy Department raises 2027 diesel price outlook by 33 cents amid Iran war
The Energy Department's statistics arm on Wednesday sharply raised its forecast for U.S. diesel prices next year as tight global supplies keep domestic inventories unusually low. Why it matters: The outlook suggests Americans could face elevated fuel costs well into 2027, as President Trump acknowled Wednesday that oil prices may not fall until after November's midterm elections. U.S. diesel…
The Energy Department has increased its prediction for U.S. diesel prices in 2027 by 33 cents, to an average of $4.40 per gallon. This forecast rise of 8.2% is driven by tight global supplies, particularly from the Middle East and Russia, which are curtailing domestic inventories. The Energy Information Administration (EIA) expects low U.S. distillate inventories to persist through much of 2027 due to refinery maintenance cuts and high U.S. net exports.
The agency also warns that global distillate production is expected to fall below last year's levels in the coming months, contributing to continued high diesel prices. Despite President Trump's earlier optimistic claims about falling oil prices after the Iran war and the U.S. election, the latest forecast suggests Americans could face elevated fuel costs well into 2027.
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