Harvest Season Diesel Prices Skyrocket Amid Global Supply Disruptions
US diesel prices have hit their highest levels in over a decade as farmers prepare for the peak harvest season. The Iran war and Ukrainian attacks on Russian refineries are contributing to tight supplies and high demand for fuel. Jed Bower, an Ohio corn and soybean farmer, expects to pay an extra $20,000 to $25,000 in diesel costs this year compared to January.
The US distillate inventories continue to tighten ahead of the fall harvest, keeping diesel costs a concern for farmers and rural businesses. Mid-August diesel prices are at their highest levels in the last decade, per AAA data. The average recorded price in 2022 was $5.82 on June 19.
Crude oil supplies are less concerning, but strong diesel crack spreads signal particularly tight supply for refined diesel. The US diesel crack hit an all-time high of $102.20 a barrel on Monday as global supply disruptions run into peak agricultural consumption season.