Diesel Prices Higher Pt 1
From the Ag Information Network, I’m Bob Larson. Elevated input costs remain a top concern for ag producers, because it tightens up profit margins.
And, one of the key input costs during fall harvest is … the price of fuel.
GasBuddy’s Patrick De Haan says the forecast for diesel prices … is gloomy …
DeHAAN … “The worry is that as we get into fall, we are going to start seeing heating oil demand go up, and heat oil and diesel are essentially the same product. And that’s going to put upward pressure on the price of diesel. In addition, we are going to start seeing refineries doing maintenance ahead of the peak of winter and so that may limit their ability to make sure that we have enough supply before we get into the peak of heating oil season.”
Moving forward, De Haan says he doesn’t see much relief …
DeHAAN … “I would foresee that diesel prices would likely continue to advance, probably more so in October than September. September may be a little bit of the calm before the storm for diesel prices, but by October there’s a lot of maintenance happening, and that maintenance is likely to impact diesel production significantly. So, I think diesel prices will likely continue inching up. We could see diesel prices by the end of the year anywhere from 20 to 35 cents a gallon higher than today. So, unfortunately, a little bit of bad news when it comes to the price of diesel."
Tune in tomorrow for more on the rising diesel prices and other forces at play in the global market.
