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Wholesale diesel prices rose $0.16 per gallon on Monday after the attack on Saudi Arabian oil production. Separately, about 50,000 UAW workers struck General Motors on September 15, causing carriers to reject freight in the Detroit area.
The article describes both events as hitting trucking quickly.
Supply disruption from the Saudi attack lifts diesel and crude costs, which raises fuel surcharges and transport costs for feed buyers.
freightwaves.comZach Strickland, FW Market Expert &, Market AnalystSep 22, 2019After 250 past bullish geopolitics events, ULSD / Diesel moved a median +1.7% over 5 sessions (58% higher; middle half -3.6% to +8.7%), and +0.9% over 20.
After 626 past bullish geopolitics events, Crude Oil (WTI) moved a median +2.1% over 5 sessions (62% higher; middle half -2.3% to +8.5%), and +1.6% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
