EVERYTHING IS GOING SWIMMINGLY: The world is struggling to make enough diesel.

The restricted supply has economic consequences. The surge in US futures has been driven in part by truckers snapping up the fuel.

“Diesel is the fuel of the 18-wheeler truck that moves products from factory to market, so when prices spike, those higher transportation costs get passed on to businesses and consumers,” said Clay Seigle, director of global oil service at Rapidan Energy Group.

While there has been growing hope that the US economy can avoid recession, “an energy price spike – whether in gasoline or diesel fuel prices – could undermine much of that progress,” he added. “This risk is not lost on anyone in Washington as election campaign season approaches.”

Soaring diesel prices may also push refineries to prioritize the fuel at the expense of making gasoline, he said.

We need more refinery capacity but we still haven’t recovered to pre-lockdown levels.