Diesel Fuel Price Hits Record High, Inflation Concerns Mount for Bitcoin
The price of US on-highway diesel fuel has reached a record nominal high of $6.529 per gallon, according to the Energy Information Administration (EIA). This marks a 24.4 cent increase from the previous week and is attributed to tight global distillate supply and elevated crude prices.
The EIA data also shows that US distillate stocks have fallen to 107.431 million barrels in the week ended September 18, down from 107.859 million barrels a week earlier.
Producer price indexes for diesel fuel and truck freight transportation show significant increases of 24.1% and 2.0%, respectively, in August.
The sustained rise in fuel and freight costs poses an inflation risk that could lead to higher interest rates, which would have a negative impact on assets sensitive to financing conditions, including Bitcoin.