Concerns are mounting over diesel supplies as renewed conflict escalates in the Middle East and the high-demand autumn season approaches, the WSJ’s Anthony Harrup writes. A global shortage of the fuel, exacerbated by Ukrainian attacks on Russian refineries and lower Chinese refinery runs, has kept prices high, even when crude oil has pulled back during truces in the U.S.-Iran war. Crude prices are typically the main driver of diesel prices, but this time refinery margins have been the dominant force behind the rise, one economist notes. The average on-highway price of diesel was $5.31 on Monday, compared with $3.53 a year earlier. Even with fuel surcharges built into contracts, truckers face difficulties handling the fuel-price volatility that affects their ability to forecast and budget for energy costs. Small truck operators in particular have limited options. And with the diesel supply squeeze, refinery margins are likely to stay high even if crude prices soften. |