Diesel prices could remain high for five years, economist warns
Economist Saul Eslake warns that high diesel and refined fuel prices could persist for up to five years. Speaking at the BeefEx feedlot industry forum, Eslake noted that the 'crack spread'—the price difference between crude oil and refined products like diesel, petrol, and jet fuel—has more than tripled.
This increase in refiner profit margins is attributed to the isolation of refineries in the Persian Gulf and damage to Russian refining capacity. While crude oil prices have recently fluctuated around or above US$100 per barrel, experts suggest that diesel prices may remain high even if crude costs drop, as the two markets are increasingly driven by different factors including refining capacity and shipping reliability.
Entities
MeOH Energy · Michael Spencer · Persian Gulf · Russia · Saul Eslake
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Diesel prices can remain high even if crude oil prices fall due to diverging market factors. www.stockjournal.com.au · www.farmonline.com.au · www.farmweekly.com.au
- [● 3 SOURCES] Diesel price hikes could persist for up to five years. www.stockjournal.com.au · www.farmonline.com.au · www.farmweekly.com.au
- [● 3 SOURCES] The crack spread between crude oil and refined products like diesel, petrol, and jet fuel has more than tripled. www.stockjournal.com.au · www.farmonline.com.au · www.farmweekly.com.au
- [● 3 SOURCES] Crude oil prices have recently been above US$100 per barrel on most days. www.stockjournal.com.au · www.farmonline.com.au · www.farmweekly.com.au
- [● 3 SOURCES] Increased refiner profit margins are driven by the isolation of Persian Gulf refineries and damage to Russian refining capacity. www.stockjournal.com.au · www.farmonline.com.au · www.farmweekly.com.au