For the first time ever, 10-year bond yields track diesel prices more closely than crude, and Trump’s fuel deal with Putin may be too little too late
Source: Fortune ·
"Ultimately, diesel and gasoline drive inflation, not crude oil."
From the source
Diesel prices have come off their all-time highs in recent weeks, but the key industrial fuel has already moved the needle across the economy and financial markets, making affordability a more potent issue in the midterm elections. The national average for diesel is about $6.277 per gallon, according to AAA, down from its $6.528 high but still 71% above year-ago levels. By contrast, U.S. crude oil is up 56% from a year earlier as damage to refining capacity in the Middle East and Russia has produced a sharper crunch in fuel markets. Because diesel is a critical input in manufacturing, agriculture and logistics, the recent price surge has been felt broadly. The latest consumer and producer price indexes showed jumps in transportation costs, while purchasing manager surveys signaled big spikes in prices businesses are paying. “This is why products have been trading at double the price of crude during the past few months, something that has never happened before. Ultimately, diesel and…