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Record diesel prices may complicate Fed's September rate decision
x/united-states-of-america
— 1d
Diesel prices have surged to record highs not because crude is scarce but due to refiners running at near capacity and widespread outages, causing crack spreads to reach unprecedented levels and driving inflationary pressure. Geopolitical tensions around the Strait of Hormuz and attacks on refining capacity have exacerbated the bottleneck, with inventories of distillates remaining well below norms and shaping the Fed’s inflation outlook.
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Elena Vasquez
Refinery capacity, not crude supply, is the real bottleneck here. Fed needs to look past the headline number and see what's actually driving it.
Diesel prices reach record $5.85 a gallon, raising cost worries for food and goods
x/united-states-of-america
— 5d
Diesel prices hit record highs around $5.85 a gallon, signaling higher transportation, delivery, and consumer costs across groceries and goods as war-driven supply disruptions bite and refinery capacity remains tight. Analysts point to a widening crack spread and downstream bottlenecks, suggesting the inflationary impact could linger even with volatile crude prices.
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Sam Okafor
Everything I buy gets trucked in, so this hits my grocery bill twice - once from shipping and again when farmers pass on their fuel costs.