Diesel Prices Skyrocket Amid Middle East Tensions
Diesel prices have surged to 'really high' levels due to tensions in the Middle East, according to Dan Pickering, founder and chief investment officer of Pickering Energy Partners. The US diesel crack, a key measure of refining profitability, hit an all-time high of $102.20 per barrel on Monday.
Pickering pointed out that global diesel stockpiles have been under immense pressure due to wars in the Middle East and Ukraine. He noted that multiple countries, including those in the Middle East, Russia, and China, have experienced outages in refining capacity.
The price increase for diesel has been 'even more significant than the rise in oil prices', according to Pickering. As oil moves a lot of goods around the world, this could have significant implications for global trade.