US diesel fuel prices reach record high at $6.05 per gallon
Reflecting geopolitical tensions in the Middle East on global oil markets, diesel prices in the US saw an all-time high. Brent crude oil trades around $104 per barrel.
Escalating tensions in the Middle East and supply concerns in global markets have pushed fuel prices in the US to record levels. The price of a gallon of diesel, which was $3.75 on February 28, has risen to $6.05 as of today, reaching a new peak in the country's history.
Latest situation in global oil markets
Driven by the conflict environment in the Middle East, global oil prices gained approximately 9 percent in value on a weekly basis. While the November futures price of Brent crude oil trades at the $104 level, the price of West Texas Intermediate crude oil hovers around $99.25 per barrel.
Background of the price increases
This rapid rise in oil prices directly affects refinery costs and is reflected in final product prices in the US domestic market. Particularly, this increase observed in diesel fuel prices has followed a steady upward trend since February.
Statement on war from President Trump
US President Donald Trump addressed the ongoing process with Iran in a statement on Wednesday. Stating that they entered the war to prevent Iran from acquiring nuclear weapons, Trump argued that oil prices would begin to decline in the event of a victory.