Diesel prices in the United States soared to a record high, as tensions in the Middle East continue to disrupt the energy supply chain worldwide.
A gallon of diesel in the US has jumped to $5.85 per gallon, according to the AAA Motor Club’s national average prices, which is more than 55 per cent higher since the Russia-Ukraine war started.
In the United States, diesel is mostly used by commercial vehicles such as trucks, trains, boats, farming vehicles, buses and construction vehicles.
In response to the surging fuel costs, the United States President recently pledged to substantially lower gas prices for all Americans through an oil deal with Venezuela. As per the latest agreement announced last week, 17 strategic oil fields with a proven potential of 65 billion barrels, as well as an investment of more than $100bn and more than $209bn in taxes for Venezuela, have been announced, according to interim President Delcy Rodriguez. The U.S. government will retain 55% of the control on the joint venture with an experienced private operator in Venezuela.
Brent crude futures LCOc1 were down 14 cents, or 0.15%, on the day at $95.38 a barrel by 1015 GMT, while U.S. West Texas Intermediate crude futures CLc1 were down 37 cents, or 0.41%, at $90.93.
However, for the week, Brent was up 6.6%. WTI was up 8.8%, its strongest weekly performance since July 13.
The latest fuel shock comes at a time when the U.S. economy is already battling elevated living costs. If diesel prices remain high for an extended period, higher freight expenses could also gradually feed into consumer prices, increasing economic and political pressure and affecting the November midterm elections.Word count: 260 words.