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Diesel still ripping higher than the rest of the barrel; here’s why

A barrel of diesel measured by one yardstick is now about twice the cost of a barrel of crude

The yawning gap between crude and diesel that is bringing broad attention to the price of the fuel, driven in part by fleets frustrated to hear reports of crude rising slowly or even falling while their own fuel costs most definitely are not. Diesel is even taking the spotlight from gasoline, which as a product consumed by far more people than diesel generally draws the most attention from the media, politicians and general consumers.

Historically, Currie said, the spread between product prices and crude prices was “relatively stable.” But on a day when Brent was trading at about $87/b, Currie noted that diesel in European trading was about $170/b.

The question then is why since the Iran war began has diesel reacted to the whole range of bullish market factors more than crude and more than gasoline. The list is a long one. Diesel still ripping higher than the rest of the barrel; here’s why – FreightWaves

Diesel still ripping higher than the rest of the barrel; here’s why – FreightWaves

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