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Diesel prices start to rise again globally

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.

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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

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IMG 7012 - The Oregon Group - Investment Insights

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:

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The Oregon Group

The Oregon Group

The Oregon Group is an investment research team founded by independent capital markets experts, Anthony Milewski and Justin Cochrane.

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