Attention: TDR Forum Junkies We talk about the bad news. We talk about the good news. No doubt you’ve notice the drop in the price of diesel fuel. When the price of diesel was higher than premium gasoline, we searched for answers and the underlying reason would typically be a supply and demand issue.
So here are a few excerpts from an article from the Wall Street Journal written by Nicole Friedman (Thursday, July 23, 2015, Pages C1 – C2) about the drop in diesel fuel prices. The full text article can be found at http://www.wsj.com/articles/diesel-prices-tank-amid-global-glut-1437606254
So here are a few excerpts from an article from the Wall Street Journal written by Nicole Friedman (Thursday, July 23, 2015, Pages C1 – C2) about the drop in diesel fuel prices. The full text article can be found at http://www.wsj.com/articles/diesel-prices-tank-amid-global-glut-1437606254
- Diesel fuel typically costs more than gasoline because U.S. refineries export much of their diesel output, leaving less available for the domestic market, and federal taxes are higher for diesel than for gasoline.
- Falling diesel prices suggest that the world’s crude-oil glut is now becoming a glut of refined products. Analysts and investors say increasing petroleum-product inventories could keep oil and fuel prices subdued into 2016.
- In recent years, refiners have invested heavily in new capacity to make a range of products known as middle distillates, including diesel, jet fuel, heating oil and kerosene.
- Refiners are now competing to sell their diesel onto the global market, pushing down prices.
- Others say the benefit is unlikely to last. Diesel prices typically rise during the fall harvest and peak in the winter heating season, while gasoline prices usually decline after Labor Day.
