US oil and gas firms warn diesel prices may take over a year to normalize
Dallas Fed survey respondents cited Middle East supply disruptions and strikes on Russian refineries as tightening global diesel availability.
The Financial Times reports US oil and gas firms warn diesel prices may need more than a year to return to 2025 levels. A Dallas Fed survey of 100 energy companies found nearly half expect diesel to take more than four quarters to normalize. Respondents cited disruption to Middle East supply from the Iran war and Ukrainian strikes on Russian refineries as factors tightening global diesel availability. An industry respondent said diesel is critical to economic activity and that the market is only starting to feel the impact of high prices.
The Trump administration has discussed measures including restricting diesel exports and urging allies to release stocks to curb domestic fuel costs. Analysts said an export ban could increase US supply in the short term but may lift fuel prices later and disrupt Europe and Latin America, which depend on US diesel shipments.