24 years ago, I recall diesel being $1.25/gallon, and hamburger meat at a little local grocer for $1/pound any time they had a sale.
Now, even going to Costco, their ground chuck is $6/pound.
Inflation is high ... but not that high
Treasury has already tried to reassure markets and failed
Add to this other trade war nonsense...
This was the desired effect though, as higher oil prices means more profit for US based oil producers. I'm sure that will trickle down any time now.
There is nothing stopping US refineries from producing more diesel, you can use both sweet and sour, this is speculators squeezing the markets.
What a great time it should be to electrify heavy transportation. If they can do it in mining and construction, why can't transportation...
Aren't they already producing as much as they can? Which is not sufficient given that globally a significant fraction of refining capacity is offline.
Because supply side. Can't have our oil barons losing out.
Is there any reason why Diesel costs more? I was always under the impression that it was a less-refined fuel therefore cheaper.
EDIT: meaning "less taxes"
Losing at war is universally bad. And long stalemated forever wars can be just as bad for both sides.
Diesel at the local garage I passed at lunchtime is £1.89 (57% more). The web [0] suggests that is more expensive than anywhere in europe other than France and Denmark for some reason.
So nowhere near "half as cheap".
I am not interested in nominal new highs.
Jet fuel and diesel fuel come from similar parts of the barrel. Refineries can largely choose what kind of fuel they produce for a given unit of input. One barrel doesn't always split into the same fractions. There is configuration involved.
This started, I believe when fracking became a major thing (the late 2000s), because shale oils tends to have less heavy hydrocarbons then the old wells.
And the ethanol makes the fuel less valuable (energy reduction per litre) moreso than biodiesel.
I was always under the impression that a big part of the difference in cost is largely due to taxes.
ck2•36m ago
even if you do not drive, it affects every delivery
imagine this pattern through 2029
https://gasprices.aaa.com/
800 more days, even just a penny increase per day
we're out of $4 Million dollar tomahawks and the iranians have endless supply of $50K drones
strategic oil reserve is about to experience permanent catastrophic damage from being drained too low
sleepyguy•13m ago
Apparently salt domes have a life span, you pump water in to remove oil. The water wears at the domes and removes more salt creating a larger cavern. It's not that we pumped out so much oil lately, it's because we were pumping out little bits over the last 5 decades constantly wearing at the domes. They were created at the time to only be used in a catastrophic situation, not when ever you want to control the price of oil......
Either way, you are correct in that their life has come to an end, we will require more expensive above ground storage going forward or we can electrify.