Oil Executives Expect Diesel Prices to Stay High for Over a Year

US oil and gas executives expect diesel to remain expensive relative to crude for more than a year, according to the latest Dallas Fed survey. The survey of 125 firms found that nearly half of respondents believe it will take over four quarters for the spread between fuel prices and crude oil prices to return to 2025 levels.

The business activity index fell to 38.8 from 46.1 in the second quarter, indicating a slowdown in expansion. However, the oil production index rose to 20.7 from 15.0, while the natural gas production index increased to 14.8 from 3.7.

Executives on average expect WTI crude at about $88 a barrel by year-end, which is below the current spot price of around $99. Forecasts range widely from $70 to $126.