California's diesel prices have jumped since the Iran war started, with ripple effects across the country
📰 source: cnbc_topnews · 💼 business
california's diesel prices have jumped since the iran war began, and the ripple effects are spreading nationwide. the state has the highest fuel prices in the u.s. and hosts the san pedro bay port complex, which handles nearly one-third of containership imports and exports. goods moving through there first get hauled by trucks and trains paying california fuel prices.
since the war entered its sixth month, attention has been on crude oil, but petroleum product markets are tighter, especially diesel. the world is short about 8% of global diesel demand, according to lipow oil associates' andy lipow, due to the iran war and ukraine's attacks on russian refining. exxonmobil ceo darren woods told cnbc the refining challenge will persist even after the strait opens. average diesel in the u.s. is $5.36, but california's is $6.92, up from $5.10 before the war.
jpmorgan analysts led by natasha kaneva said a meaningful share of america's supply chain pays west coast fuel prices, influencing freight costs and ultimately the delivered cost of goods nationwide.
why it matters: california's diesel spike raises freight costs nationwide, squeezing supply chains and consumer goods prices.
source: cnbc_topnews
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