The average price of diesel in Indiana was at $5.38 a gallon on Sunday, May 15 according to AAA, which has set a record for the highest average price for diesel in Indiana.
The volatility of oil prices continues, with June Crude Oil prices trading over $109.50 a barrel on Sunday evening.
There are concerns about the possibility of another round of sanctions against Russia by the European Union and what that could do to the oil market internationally.
While gasoline prices are high, it’s the diesel prices that have left many with sticker shock. Patrick DeHaan, Head of Petroleum Analysis for Gasbuddy.com, says diesel inventories are at their lowest level in decades while the demand for diesel remains high globally.
“It’s the fuel of much of the U.S. economy, semitrucks, trains, a lot of construction equipment, and diesel inventories have been falling,” says DeHaan. “Not only that because of the EU’s stance on Russian oil already, we’ve seen shortages of diesel in Europe with much or some of the product has been moving easterly to the European Union, and that has kept prices for diesel very high in the U.S. as we continue to see that imbalance persist. I do not expect any improvement in diesel prices.”
Concerns are mounting that the U.S. East Coast could begin seeing diesel shortages soon.
Sources: NAFB, AAA, Gasbuddy.com.