Diesel Price Apocalypse Looms as Global Refined Capacity Plummets

Diesel prices have been on a wild ride lately, and experts say things may get even worse. Tom Kloza, chief energy advisor for Gulf Oil, warns that the loss of global refining capacity is driving price swings.

According to Kloza, the US oil industry is better off than most, but unintended consequences remain, particularly with regards to a potential diesel export ban.

Kloza stresses that drivers don't react to diesel prices the same way they do to gas prices, and that high diesel prices can reflect the price of everything else. He warns of 'apocalyptic' prices if there's a cold winter or global recession.

The US Department of Energy has released 40 million barrels of crude oil, but experts say more relief may be needed. Fuel emergencies have been declared in several states, allowing for wider use of red-dyed diesel fuel, which is normally limited to off-road use.