Diesel Prices Hit Record High Amid Geopolitical Tensions
US diesel prices have hit a record high of $5.85 per gallon, surpassing previous highs set in August. The surge is largely attributed to geopolitical tensions and supply chain disruptions, which have exacerbated existing inventory shortages.
The Energy Information Administration reported that US distillate stocks fell by 2.2 million barrels to 103.4 million for the week ending August 26, about 15% below the five-year average. This scarcity has driven up prices, with Brent crude firming to $96.85 per barrel and US crude reaching $92.10.
The Federal Reserve is closely monitoring inflation data ahead of its September meeting, where a decision on interest rate hikes will be made. Reuters reported that Fed funds futures price roughly 57% odds of a September move, with 70% for October and a full move by December.