Diesel prices in California hit $7 per gallon again Wednesday, up about 30 cents from a month ago and $1.89 per gallon higher compared to the same period last year. This surge is driven by the wars in Ukraine and the Middle East which have disrupted about 8% of global diesel supply while worldwide demand stands at 28 million barrels per day. Analysts point out that diesel is the most important fuel for the global economy, used in transportation, heating, agriculture and industry. Refineries are reaping substantial margins: turning crude into diesel now generates $100 per barrel, exceeding U.S. crude prices trading around $85 per barrel. Prices are expected to remain elevated until damaged refineries in Russia are back online and Middle Eastern exporters restore their capacity.
Source: Read the original article
