US diesel prices fall under $5, easing inflationary pressure
“Is it a White House win? Yes, from the narrow perspective of prices now versus peak prices in the second quarter. But there’s still a ways to go to get to prewar retail prices.” — Neil Crosby, Head of Research at Sparta Commodities
- Expert: Neil Crosby (Head of Research, Sparta)
- Publication: Bloomberg
- Market Focus: Diesel, Crude Oil, Energy Policy
- Geographies: US, Gulf Region, Russia
In a recent analysis for Bloomberg, Sparta’s Head of Research, Neil Crosby, notes that the recent diesel decline, while significant from peak levels, has stalled far short of prewar prices. US diesel averages $4.98 per gallon—still 32% above prewar levels—despite White House efforts including Jones Act waivers and Strategic Petroleum Reserve draws. Crosby highlights a critical vulnerability: domestic inventories are at their lowest seasonal levels in decades, leaving the market exposed. Traders should closely monitor Russian export ban developments and inventory trends, as either could quickly reverse recent price gains.
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