The cost of diesel in the US appears to have bottomed out and begun to rise across the country, according to the latest figures from EIA — with a similar picture across Europe and Asia.
Some of the latest reasons impacting the price increase include:
- extreme heat and unplanned problems have forced a number of refineries to cut production, including Exxon Mobil Corp.’s Baton Rouge plant in the US, Shell Plc’s Pernis site in Rotterdam and ENEOS Holdings Inc.’s’ Mizushima facility in Japan
- low inventories
- rise in price of oil, over $10 in last month
- the continued growth of the US economy, as recession fears ease
- low water levels in Europe, eg Rhine, causing diesel imports to be stuck in port
However, the problems in the diesel industry run deeper than seasonal fluctuations, with a lack of investment and sanctions on Russian gas oil. Our analysis on the fundamentals behind the current diesel crisis: