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 are high, it’s the diesel prices that have left many with sticker shock. Patrick DeHaan with Gasbuddy says 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.”
And concerns are mounting that the U.S. East Coast could begin seeing diesel shortages soon.