We've seen all sorts of *stuff* about the diesel price problem. Two things stand out: 1) the US actually refines MORE diesel than it uses. And 2) Europe is desperate for diesel.
... At the heart of the problem is the fact that Europe won’t purchase cheap Russian diesel as they did before the start of the war in Ukraine. Instead, Europe now relies on the Middle East and the US for it’s supply. According to recent figures, the Middle East produces roughly 40% of Europe’s diesel imports while the U.S. now accounts for 50%. But as a result of the war in Iran, however, Middle Eastern infrastructure has been damaged, and energy flow through the Strait of Hormuz has slowed considerably. Without cheap Russian energy as an option and with limited Middle Eastern output, Europe has placed immense demand on U.S. diesel inventories. That, in turn, has driven up domestic diesel prices in the United States. And since Trump doesn’t have the diplomatic skills to immediately end the hostilities in the Middle East, supply pressure will continue to inflate the diesel market, at least in the near term....
The proposal that Trump should ban export of diesel becomes very interesting in light of the above, but you can bet your net worth that Big Oil is throwing a lot of........ahh..........incentives at Trump & Co. about such a ban.
The cost of Netanyahu's War continues to rise. Be sure to thank Ms. Adelson next time you're in Vegas.
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