The record price of diesel threatens to stoke inflation at a time when consumers are already price-sensitive and businesses are reeling from higher costs due to trade tensions. Why it matters: Diesel is a key cost throughout the supply chain, meaning soaring prices could eventually show up in what consumers pay for everything from groceries to household goods. Driving the news: The national average price of a gallon of diesel topped $6 for the first time ever, AAA said Friday, Axios' Ben Berkowitz reports . - That's up 60% from a year earlier. Between the lines: Food prices could be among the first places consumers feel the ripple effects, executives said this week. - At grocery chain Kroger, which has been trying to keep a lid on…
The Energy Department's statistics arm on Wednesday sharply raised its forecast for U.S. diesel prices next year as tight global supplies keep domestic inventories unusually low. Why it matters: The outlook suggests Americans could face elevated fuel costs well into 2027, as President Trump acknowled Wednesday that oil prices may not fall until after November's midterm elections. - U.S. diesel prices hit all-time highs this month, due to the Middle East conflict thwarting oil and petroleum product supplies, and Ukraine's drone campaign targeting Russian refineries . Driving the news: The latest Energy Information Administration outlook expects retail diesel to average $4.40 a gallon in 2027, up 33 cents, or 8.2%, from its previous…
The state of the global diesel market is getting even more precarious as the Russia-Ukraine war and the Iran crisis squeeze supply from multiple angles. Why it matters: Diesel prices ripple through economies here and abroad, affecting shipping costs, construction and plenty in between. - The average U.S. price is up 44 cents over the last month to $5.32 per gallon, compared to $3.71 a year ago, per AAA. - However, during the Iran crisis, it hasn't hit the all-time high of $5.82 per gallon that AAA recorded in mid-June of 2022. Driving the news: A new S&P Global Energy analysis unpacks the ingredients behind the "big squeeze" in global refined product markets. - S&P estimates that refineries worldwide processed 7.5 million barrels per…
A new analysis by Always On Energy Research and the Institute for Energy Research concludes that renewable energy mandates and net-zero policies have contributed to higher electricity prices in states that adopted them, while states with fewer climate-related mandates generally have lower electricity costs. The analysis examined electricity pricing data from the U.S. Energy Information Administration […] The post Analysis: Higher Electricity Rates in Blue States Linked to Renewable Energy Policies appeared first on StoneZone .
A new analysis by Always On Energy Research and the Institute for Energy Research concludes that renewable energy mandates and net-zero policies have contributed to higher electricity prices in states that adopted them, while states with fewer climate-related mandates generally have lower electricity costs. The analysis examined electricity pricing data from the U.S. Energy Information Administration and found that most states with electricity rates above the national average voted for the Democratic presidential nominee in the 2020 and 2024 elections. According to the report, 86 percent of states with above-average electricity prices supported the Democratic nominee in both elections. By comparison, 80 percent of the 10 states with…Open
Data: U.S. Energy Information Administration; Chart: Ben Geman/Axios With the Iran war now over 100 days old, here's the latest rolling snapshot of how it's driving changes in energy markets. The big picture: Global oil use is going down (in the short term), UN climate officials are using the crisis to push for clean energy, and coal is getting more use in the Asia-Pacific region. Oil: The Department of Energy's data arm now sees global oil use dropping this year by 1.1 million barrels per day (bpd) before bouncing back next year. - The big picture: "High fuel prices, reduced fuel availability, and government initiatives have lowered oil demand," the Energy Information Administration said in its latest outlook Tuesday. - The intrigue:…
Data: AAA; Chart: Ben Geman/Axios Pain at the pump is easing, but gas is far costlier heading into the summer than last year — and what comes next is wildly unpredictable. Why it matters: High gas prices are the most visible economic effect of the Iran war for many Americans grappling with inflation . Driving the news: The U.S. average price for regular is $4.39 per gallon on Friday, per AAA — down 16 cents over the last week as the U.S. and Iran closed in on a possible deal to extend the ceasefire. - But it's still far above the roughly $3 that Americans were paying right before the war started. - Prices are seeing their largest weekly drop of the year, Patrick De Haan, head of petroleum analysis at the fuel data and analysis firm…
Data: U.S. Energy Information Administration ; Chart: Amy Harder/Axios China has stashed away far more oil than any other country, according to U.S. government data released this week. Why it matters: The stockpile, which surged last year, is emerging as a strategic advantage as the world faces an oil shock with the Strait of Hormuz largely shut. The big picture: China is a huge winner in the Iran war due in large part to its positioning on energy, including its oil stockpile. - It also owns over 70% of global solar, wind, battery and electric vehicle supply chains. - Those are all seeing a boost as import-dependent countries turn from oil and natural gas to renewables. Between the lines: "The war was the stress test that Beijing's…
U.S. average gasoline prices may not return to pre-war levels under $3-per-gallon until next year, Energy Secretary Chris Wright told CNN Sunday. Why it matters: The Iran war has driven up what had been fairly low U.S. gas prices, a spike that could hurt Republicans in the midterm elections. Driving the news: Asked Sunday when Americans should expect gas under $3, Wright replied, "That could happen later this year. That might not happen until next year." - "But prices have likely peaked, and they'll start going down, certainly with a resolution of this conflict, you'll see prices go down," he said on CNN's "State of the Union ." State of play: Wright added that under $3 is "pretty tremendous" in inflation-adjusted terms. He argued the…
President Trump is pairing his Iran blockade with a sales pitch: Countries squeezed by the Strait of Hormuz — especially China — should buy more oil from the U.S. instead. Why it matters: The U.S. rise to become the world's largest oil and gas producer — and largest exporter of liquefied natural gas — provides geopolitical leverage that Trump is attempting to wield. Driving the news: "China can send their ships to us. China can send their ships to Venezuela," Trump said on Fox's "Sunday Morning Futures." - And he claimed in a Saturday social media post that "empty Oil carrying ships from many Nations are all heading to the United States of America to LOAD UP with Oil." Reality check: The U.S. is already among the world's largest…