California diesel prices surge to $6.92/gallon since Iran war began, up from $5.10, impacting U.S. supply chains
California, home to the nation's busiest containership port complex, is experiencing a significant jump in diesel prices, which have risen to $6.92 per gallon from $5.10 before the Iran war started. This increase, combined with Ukraine's attacks on Russian refining infrastructure, has led to a global diesel demand shortfall of approximately 8%, according to Lipow Oil Associates. JPMorgan analysts note that a substantial portion of America's supply chain is affected by these West Coast fuel prices, influencing freight costs and ultimately the delivered cost of goods nationwide. ExxonMobil CEO Darren Woods stated that this refining challenge is likely to persist for some time.
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