Diesel futures jump, signaling higher prices to come despite Trumps Russia deal
Diesel futures traded sharply higher Tuesday, as doubts mounted about the likely impacts of the Trump administration’s latest efforts to push prices down.U.S.diesel futures were up 5% by midday to their highest level in weeks.
In Europe, diesel futures rose by about 3.8%, while gas futures spiked to levels not seen all year.A move higher in futures markets typically signals that prices will climb in the coming days.Already, the average nationwide price of diesel is up 70% since the U.S.
and Israel attacked Iran on Feb.28.
The cost of unleaded gas has risen by more than 45% over that period.Crude oil prices, meanwhile, were mixed.Brent traded around $106 per barrel, while U.S.
crude oil neared $95 per barrel.Both of those key energy benchmarks have risen around 70% since the start of the year.Gas and diesel prices are rising especially fast in parts of the country where President Donald Trump and Republicans can least afford to anger voters ahead of November’s midterm election.
“Absolutely stunning price spikes in wholesale diesel today,” wrote Gulf Oil adviser Tom Kloza Tuesday on X.“US retail diesel price record of $6.53/gal could be topped by the midterms.”“Up 18cts/gal Gulf Coast and East Coast; but up 28cts/gal in Southern California and 25-30cts/gal in Great Plains and Great Lakes,” he wrote.Patrick de Haan, the head of petroleum analysis at GasBuddy, said “$6/gal diesel may be here to stay for now.” “Truckers and farmers not going to see any relief anytime soon,” he wrote on X.The broad spike higher in diesel futures Tuesday came just two days after Trump announced a controversial deal with Russian President Vladimir Putin, to increase diesel supplies in the United States by buying previously sanctioned Russian reserves.When Trump announced the deal on Sunday, he said it would result in millions of metric tons of additional diesel for the world.
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