US diesel prices hit record $5.78 per gallon amid sustained export volumes and domestic refinery constraints
Record diesel prices reflect a deliberate trade-off between export revenues and domestic supply tightness. Inventory data and crack spreads confirm the transmission mechanism into broader costs. No near-term reversal is visible in official statistics.
Forward indicators point to continued pressure unless export flows moderate or additional hydrocracking capacity returns online. EIA weekly reports through mid-June confirm no material inventory rebuild, and seasonal agricultural demand will add 150,000-200,000 barrels per day through September. Absent a policy shift on exports or a sharp demand contraction, the cost pass-through into core inflation measures will persist into the fourth quarter.
EIA: US distillate inventories will remain below 110 million barrels through September 2022 absent a 200,000 bpd drop in exports.
Sources (2)
- [1]Primary Source(https://www.eia.gov/dnav/pet/pet_sum_sndw_dcus_nus_w.htm)
- [2]Supporting Source(https://fred.stlouisfed.org/series/DDFUELNYH)