Crude oil nears $97 per barrel, diesel hits highest since 2022
Oil prices climbed for the fourth consecutive session on Thursday as international benchmark Brent crude rose above $97 a barrel. Diesel reached its highest average price in over four years at $5.78 per gallon, reflecting an increase of more than 53% from pre-conflict levels earlier this year. The surge is driven by two major disruptions: reduced oil shipments through the Strait of Hormuz due to ongoing hostilities and Russia's suspension of diesel exports until October following refinery damage in Ukraine. These factors have collectively removed about 20% of normal global diesel supply, according to ING analysts. The U.S.-Iran conflict has also escalated this week with military strikes reported. The price increases pose risks for broader economic impacts as higher diesel costs could affect food transportation and consumer prices by autumn. Federal Reserve officials remain cautious but suggest energy inflation may not yet be spreading into other sectors.
Tickers: $WTI
Topics: crude oil diesel prices geopolitical tensions supply chain disruptions