Diesel Prices Hit Record High Amid Ongoing Conflicts and Supply Chain Constraints
The national average price of diesel fuel has reached an all-time high of $5.942 per gallon, according to AAA.
A recent study by Brown University found that American consumers have spent 62% more on diesel since the conflict with Iran began in February.
Andrew King, director of the OOIDA Foundation, explained that fuel prices are influenced not only by crude oil costs but also by the 'crack spread,' which measures the cost of turning crude into finished products like diesel. The crack spread is currently around $100 per barrel.
The U.S. Energy Information Administration's (EIA) September outlook predicts that crude oil production will remain below pre-conflict averages, and constraints on traffic through the Strait of Hormuz will continue through the end of 2026. EIA also forecasts an increase in Brent crude oil prices per barrel through the end of the year.