Record Diesel Prices Persist Despite Rising Oil Flows

Record U.S. crude production has not prevented a diesel crunch because the shortage is concentrated in refining and fuel inventories, not crude supply. Refinery equipment and the properties of different crude oils limit how much diesel plants can produce, while distillate stocks are unusually low and are expected to remain below their typical range. Although oil flows through the Strait of Hormuz have largely recovered and pump prices have eased slightly, lost supply, depleted inventories and constrained refinery capacity continue to support high gasoline and diesel prices. The high fuel costs have not made electric trucks economically competitive, and California carriers are seeking subsidies to help cover their costs and charging-related downtime.