OPEC+ announced a 2-million-barrel-a-day cut in oil production during a meeting on Wednesday, which could send fuel prices back up.
“This is a bit of an interlude in what is going to be a stormy, stormy path the rest of this year and into 2023 as well,” said Tom Kloza of OPIS.
"Short-term gain, long-term pain," is what one analyst called the White House release of oil from the nation's Strategic Petroleum Reserves in an effort to bring down fuel prices.
Oil and diesel prices, already spiking, may get worse with President Biden's move to cut off crude oil imports from Russian in the wake of the invasion of Ukraine.
Russia’s invasion of Ukraine could have ripple effects throughout the supply chain and trucking, as oil prices have soared and cyber security experts say cyber attacks won’t likely remain inside Ukraine’s borders.
Diesel prices have risen to their highest since the end of 2014, and crude oil prices don’t show signs of improving anytime soon.
Diesel and crude oil prices are the highest recorded in years as consumption surges in the U.S.
The increase in crude oil prices – and therefore diesel prices – is led by recovering demand and suppressed supply, the roll-out of the COVID-19 vaccine, and falling inventories, analysts say.
Oil prices bounced back last week, jumping to more than $30 a barrel. While some see this as a positive, there might be more to consider below the surface, both literally and metaphorically.
Diesel prices are once again down this week, dropping an average of 39 cents a gallon since last week and by $1.114 since last year.
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