U.S. Diesel Hits Record $6.50 as Global Fuel Crunch Deepens
Diesel Hits Record $6.50 as Global Fuel Crunch Deepens What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… The average retail price of diesel in the United States topped $6.50 per gallon this weekend amid a worsening global fuel crunch that threatens to hit economies, including the world’s largest.
The national average diesel price jumped to $6.5050 per gallon as of Sunday, according todatafrom AAA.
The price hike to $6.50 from the $6 mark reached only two weeks ago was very steep, as the international Brent oil benchmark remains at $100 per barrel and fuel supply from the Middle East and Russia remains heavily constrained.
diesel price was $5.5477 a gallon nationwide.
Now it has soared by $1 per gallon in four weeks, after having topped the previous record from 2022 and moving past $6 a gallon for the first time ever.
As a result of the jump in crude oil prices and a worsening global crunch for fuels, U.S.
gasoline prices are also rising and are now at a national average of $4.4761 per gallon, up from $4.1044 a month ago, and $3.1894 per gallon at this time last year.
The price spikes in gasoline and diesel could influence voter behavior in the mid-term elections in early November.
Moreover, the record-high diesel price could worsen the inflation outlook and slow the economy.
Last week, the Fedraisedthe key interest rate for the first time since 2023, and Fed Chairman Kevin Warsh said that “The plain fact is that inflation is too high, and has been for too long.” The surge in diesel prices has started to dominate conversations about slower economic growth and even recession.
Goldman Sachs had a 30% chance of recession within 12 months back in March, at the start of the Middle East conflict.
economies in the face of the supply disruption have lowered the odds to 15% now.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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