Diesel makes the world go around
Diesel prices are skyrocketing as we head into the midterms. Trump’s elective war in the Middle East has slowed oil production and refining. While Trump tries to shift blame to Ukraine’s bombing of Russian diesel refineries, that is dwarfed by the consequences of blocking the Strait of Hormuz and the recent bombing of a Saudi pipeline that had been used to bypass the strait. “ Priyanka Shankar at Al Jazeera reminds us that there is yet another driver of inflation in all this. Refineries produce gasoline, diesel and distillates, and sell the heavy fuel oil (HFO) left over, “bunker fuel,” to shipping companies. But there is a shortage of bunker fuel. Not only has the Netanyahu-Trump war on Iran taken several million barrels of crude oil off the market daily, but the high price of diesel means that refineries are now making another pass at the HFO and turning it into diesel rather than selling it at a lower price for ships. Less supply and stable demand equals higher prices, and the...