US diesel hits record $6 a gallon on Iran supply shock - FT中文网
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US diesel hits record $6 a gallon on Iran supply shock

Surging cost for fuel critical to agriculture and industry stokes price pressures as Americans confront affordability crunch
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{"text":[[{"start":10.7,"text":"US diesel prices have hit a record $6 a gallon as Donald Trump’s war in Iran and Ukrainian attacks on Russian refineries choke fuel supplies globally, triggering new fears of inflation. "}],[{"start":23.25,"text":"The diesel pump price has surged this year and rose to $6.06 on Friday, motorist group AAA said, above the previous record high of $5.82 in 2022 following Russia’s full-scale invasion of Ukraine."}],[{"start":38.25,"text":"Average prices for US diesel — the lifeblood of American industry and agriculture — now substantially exceed the average set under Trump’s predecessor Joe Biden."}],[{"start":48.3,"text":"Diesel’s critical role in the transport supply chain is also feeding into surging producer prices, which can stoke inflationary pressures at a time when Americans increasingly feel squeezed by affordability."}],[{"start":61.099999999999994,"text":"The surge reflects a deepening energy supply shock that is reverberating through the economy just weeks ahead of midterm elections that will decide who controls the US Congress. "}],[{"start":71.55,"text":"“This has been not a spike but a sustained grind higher,” said Rory Johnston, a Toronto-based energy analyst. “We don’t really have anywhere near enough diesel on the market.” "}],[{"start":83.55,"text":"Global diesel markets are under severe pressure due to the conflicts in Ukraine and the Middle East, which have restricted flows to customers in Asia and Europe. This has elevated the US’s prominence as a petroleum products exporter and drained domestic stockpiles. "}],[{"start":99.6,"text":"The jump in diesel comes ahead of the autumn high season, where the fuel is used to power agricultural equipment to harvest and transport crops."}],[{"start":108.3,"text":"Grain farmers in America’s Corn Belt have said they are facing a crisis with rising fuel and fertiliser prices eating into profits."}],[{"start":116.2,"text":"“There really is very little in the way of solutions here,” said Robert Campbell, an analyst at Energy Aspects, about the diesel shortage. "}],[{"start":124.10000000000001,"text":"“It’s a product which does not have a great deal of demand elasticity. If you have goods that need to move, you need diesel. If you have crops that need to be harvested, you need diesel,” he added. "}],[{"start":135.4,"text":"The harvest season peaks in October and continues through November, when cooler temperatures also start driving demand for refined products for residential and commercial heating. "}],[{"start":146.05,"text":"Inflation is an issue for US voters, with prices rising by 3.4 per cent in July. Consumer prices are 28 per cent higher than before the Covid-19 pandemic. "}],[{"start":158.05,"text":"Trump has justified the high prices as a necessary evil in taming the nuclear threat posed by Iran. "}],[{"start":164.5,"text":"“Food prices and almost any other item are rapidly going down. And by the way, oil will be going down as soon as we win the war with Iran, which is taking place,” Trump said on Wednesday at a Republican midterm convention in Dallas designed to energise his base. "}],[{"start":180.45,"text":"But voters are increasingly frustrated with Trump’s handling of the economy and the cost of living. A recent FT poll showed that his approval rating has fallen to its lowest level, with just 33 per cent of registered voters approving of his performance as president. "}],[{"start":196.29999999999998,"text":"“Until you actually get a deal in Iran that halts aggression at the Strait and normalises the flow, you’re not going to see much of a change,” said Dave Ruisard, US products pricing manager at Argus Media. "}],[{"start":209.79999999999998,"text":"Ruisard pointed out that getting supplies out of the Middle East remained difficult."}],[{"start":214.7,"text":"The US military has been helping ships transit on a route through the Strait of Hormuz off Oman but many of those ships have come under attack."}],[{"start":222.89999999999998,"text":"Additional reporting by Myles McCormick"}],[{"start":232.44999999999996,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1789120353_1378.mp3"}

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