U.S. Diesel Futures Rise 2.1% Despite Tax Break, Increased Russian Supply
Summary
- U.S. diesel futures prices rose 2.1% despite tax cuts and increased Russian diesel supply.
- Market analysts said the impact of the dyed diesel tax break on transport operators would be limited.
- Tight global diesel supply is expected to keep upward pressure on fuel prices in place.
Forecast Trend Report by Period
U.S. diesel futures prices are rising despite tax relief measures and increased availability of Russian diesel supply, as tight global supply continues to keep upward pressure on prices.
Walter Bloomberg reported on October 13 that U.S. diesel futures climbed 2.1% to $4.8239 a gallon. Prices rose despite diesel-related tax relief measures and the prospect of greater Russian diesel supply.
Market analysts said the tax break for dyed diesel would have only a limited impact on transport operators. Dyed diesel is typically used for purposes other than on-road driving.
They also said additional Russian diesel supply would be unlikely to drive prices sharply lower in the short term.
With global diesel supply still tight, upward pressure on fuel prices is continuing.
JH Kim
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