With seemingly no obvious end to the conflict in the Middle East, the available supply of refined fuel is becoming a concern. The price of diesel fuel hit a record level of $5.85 this morning. Diesel is the main component fueling a wide swath of economic activity including transportation, heating, manufacturing, agriculture, and various industrial processes. As a result of the six-month strain on the global oil supply chain, available diesel supplies are now running at very low levels. This, combined with the fact that several areas of the economy outside of energy are still experiencing pricing pressures (54% of PCE components tracking above +3%), suggests that inflation will remain elevated for quite some time. A heavy burden for consumers who have already endured high gasoline prices for much of the year.
September 4, 2026
With seemingly no obvious end to the conflict in the Middle East, the available supply of refined fuel is becoming a concern. The price of diesel fuel hit a record level of $5.85 this morning. Diesel is the main component fueling a wide swath of economic activity including transportation, heating, manufacturing, agriculture, and various industrial processes. As a result of the six-month strain on the global oil supply chain, available diesel supplies are now running at very low levels. This, combined with the fact that several areas of the economy outside of energy are still experiencing pricing pressures (54% of PCE components tracking above +3%), suggests that inflation will remain elevated for quite some time. A heavy burden for consumers who have already endured high gasoline prices for much of the year.