Diesel prices are on the rise… again
After a ten-week drop in diesel prices, there has been a sudden increase of 1.8 cents, which is concerning, as it may lead to a recession. The average diesel price is now $4.116 per gallon, which is still lower than January's $4.622 per gallon. A recent report indicates a 2% drop in America's diesel demand, attributed in part to port issues and reduced container activity.
Fluctuations in diesel prices can be caused by several factors, such as changes in supply and demand, geopolitical events, weather patterns, and market speculation. A sudden increase in demand for diesel fuel, due to either seasonal factors or increased economic activity, while supply remains constant, can lead to a price hike. Political unrest or conflicts in major oil-producing regions can disrupt the global oil supply chain, leading to price fluctuations. Although predicting future diesel prices with accuracy is challenging, analysts and traders keep a close eye on developments in the oil market to make informed decisions based on available information.
U.K. Prime Minister Rishi Sunak has announced a delay in several key emissions-reduction targets, including pushing back the ban on the sale of new gasoline and diesel cars from 2030 to 2035.