A good friend in VA. who works as a financial advisor told me that diesel is high due to the O' Biden administration is sending 30-40% production to the EU to help them during the Ukraine drama.
Another friend who works in the petroleum sector told me that these price hikes are due to seasonality. Apparently, spring time is a time that diesel and home fuel manufacturing slows to do maintenance in the refineries.
Now Martin Armstrong, an economist I follow, thinks diesel prices are high and will get higher due to the new "green deal" direction by the O' Biden administration. He claims that the administration is "unofficially" pressuring oil companies to slow down the production of diesel to force the new green deal on all of us.
I do not care what the reason is why diesel prices are rising. Bottom-line, higher diesel prices means more inflation and supply chain challenges will increase.
Looking forward, for you folks that heat with home heating oil, get ready for a cold winter. For you folks that like to eat, get ready to go to bed a few times a week hungry. For you folks that like to see cities raised by Antifa and BurnLootMurder Inc. goons, you will get your wish this summer, fall, and winter.
Last, Armstrong predicts that crude will be hovering around $200- a barrel by the end of the year driven by the new green deal.
Stay tuned.
