Why Are Diesel Prices So High?

The volatility of oil prices continues, with prices trading flat to start this week. That comes after prices jumped about $9 per barrel last week, pushing fuel prices higher. Many are concerned about the possibility of another round of sanctions against Russia, and what that could do to the oil market internationally. While gasoline prices in many locations are back above $4.50 a gallon, it’s the diesel prices that have left many with sticker shock.

Why are diesel prices so high right now?

Patrick DeHaan with Gasbuddy said diesel inventories are at their lowest level in decades, and on top of that demand for diesel, specifically, is high globally.

“It’s the fuel of much of the U.S. economy, semitrucks, trains, a lot of construction equipment, and diesel inventories have been falling, not only that because of the EU’s stance on Russian oil already, we’ve seen shortages of diesel in Europe with much or some of the product has been moving easterly to the European Union, and that has kept prices for diesel very high in the U.S. as we continue to see that imbalance persist.  I do not expect any improvement in diesel prices.”

What happens if the EU puts in place the sanctions many are speculating at this point? And can needed oil be found for those counties that will be impacted by those sanctions, such as Poland? Catch our entire Price At The Pump podcast to learn more.

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