Why US diesel prices hit a record: reserves, refinery outages, Russia strikes
Matt Wells of the Mid-West Truckers Association points to several causes of record US diesel: drawn-down fuel reserves, temporary shutdowns at two California refineries and a Joliet refinery, and Ukrainian strikes on Russian refineries. He expects the costs to pass through to farmers and consumers.
· Feedsoft Markets Desk
TRANSCRIPT
US diesel prices hit a record. Diesel moves feed: trucks, tractors, grain hauling. Right now US diesel prices are at record highs.
Fuel reserves are drawn down. Stockpiles that usually cushion supply have been run down, says Matt Wells of the Mid-West Truckers Association.
Refineries went offline. Two California refineries and one in Joliet were temporarily shut. Ukrainian strikes also damaged Russian refineries.
Costs pass down the chain. Wells expects higher fuel costs to reach farmers and consumers. He doesn't foresee a quick decline.
What it means for feed buyers. Freight and farm operating costs rise with diesel. Watch delivered prices, not just the ingredient price.
Read the full analysis: feedsoft.ai/events/95280-perfect-storm-of-events-drives-diesel-prices-higher
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Market information, not investment advice.