Diesel prices topped $6 per gallon for the first time in history. On the eve of the peak season for diesel demand, this phenomenon increases the risk of energy boosting inflation. According to the American Automobile Association, the average price of diesel in the US reached 6.0556 US dollars per gallon, and the price of diesel in California was close to 8 US dollars per gallon. Diesel is the main fuel in the global economy and is widely used in electricity generation, home heating, agricultural equipment, and heavy trucks. Although Americans rarely buy diesel directly for their daily consumption, diesel is a core input for food, logistics, and construction costs, which means that the impact of record high prices will eventually be transmitted to consumers. In the fall, demand for heating and agricultural oil increased, and so did the demand for diesel. Geopolitical turmoil has severely curtailed global diesel production and transportation capacity. In Russia, Ukraine continued to carry out drone attacks on refineries for several months, prompting Russia to introduce a ban on diesel exports. On the Middle East side, shipping in the Strait of Hormuz is intermittent, combined with reduced refining capacity, restrictions on diesel production and distribution, and the scale of fuel shipments is still far below pre-war levels. This week, the fighting around the critical Strait of Hormuz and the Strait of Mander escalated. Both the US and Iran seem ready to fight a protracted war, which may keep energy prices high for a longer period of time. With just over 50 days left until the midterm elections, soaring oil prices pose a serious challenge to President Trump's Republican Party. Maine accounts for the highest share of domestic heating oil usage in the US. In agricultural states such as Ohio, Kansas, and Iowa, diesel price issues may become a key influencing factor. However, the White House has few policy tools to reduce domestic oil prices; there are only two options left: further release strategic oil reserves or implement export bans. When asked about diesel export control policies, US Secretary of the Interior Doug Bergum said that all plans are within the scope of consideration, but at the same time, he also said that such measures would historically drive up prices.

Diesel prices topped $6 per gallon for the first time in history. On the eve of the peak season for diesel demand, this phenomenon increases the risk of energy boosting inflation. According to the American Automobile Association, the average price of diesel in the US reached 6.0556 US dollars per gallon, and the price of diesel in California was close to 8 US dollars per gallon. Diesel is the main fuel in the global economy and is widely used in electricity generation, home heating, agricultural equipment, and heavy trucks. Although Americans rarely buy diesel directly for their daily consumption, diesel is a core input for food, logistics, and construction costs, which means that the impact of record high prices will eventually be transmitted to consumers. In the fall, demand for heating and agricultural oil increased, and so did the demand for diesel. Geopolitical turmoil has severely curtailed global diesel production and transportation capacity. In Russia, Ukraine continued to carry out drone attacks on refineries for several months, prompting Russia to introduce a ban on diesel exports. On the Middle East side, shipping in the Strait of Hormuz is intermittent, combined with reduced refining capacity, restrictions on diesel production and distribution, and the scale of fuel shipments is still far below pre-war levels. This week, the fighting around the critical Strait of Hormuz and the Strait of Mander escalated. Both the US and Iran seem ready to fight a protracted war, which may keep energy prices high for a longer period of time. With just over 50 days left until the midterm elections, soaring oil prices pose a serious challenge to President Trump's Republican Party. Maine accounts for the highest share of domestic heating oil usage in the US. In agricultural states such as Ohio, Kansas, and Iowa, diesel price issues may become a key influencing factor. However, the White House has few policy tools to reduce domestic oil prices; there are only two options left: further release strategic oil reserves or implement export bans. When asked about diesel export control policies, US Secretary of the Interior Doug Bergum said that all plans are within the scope of consideration, but at the same time, he also said that such measures would historically drive up prices.