Diesel Prices Are the Latest Economic Headwind

May 24, 2022--Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Energy prices are the largest component of inflation in the U.S., and the record price of diesel could put even more strain on an economy flirting with recession.

Crude oil prices were already moving toward $100 per barrel before the Russian invasion of Ukraine in late February further exacerbated the gap between supply and demand. Apart from crude oil and natural gas, Russia is a major supplier of refined petroleum products. The lack of supply and the resurgent demand in the post-vaccination stage of the pandemic means energy prices will continue to test new highs.