Diesel prices are below normaland they could rise this year as North American and Western European economies come out of a teetering recession this year and business activity perks up
Diesel prices are below normal—and they could rise this year as North American and Western European economies come out of a teetering recession this year and business activity perks up. Diesel, heating oil, and gas oil inventories have been hovering below the ten-year seasonal average across North America, Europe, and Singapore in January, which has been placing upward pressure on fuel prices.
Traders are also expecting governments the U.S. Federal Reserve and the European Central Bank to cut interest rates this year, further propping up manufacturing activity, drawing down middle distillate inventories and helping to prop up middle distillate prices. According to the EIA’s latest edition of the Weekly Petroleum Status Report WPSR published each Wednesday, distillate fuel inventories are 5% below the five-year average for this time of year in the United States, standing at 130.