The latest Federal Reserve Bank of Dallas survey found that U.S. oil and gas executives expect diesel prices to remain elevated for more than a year.
The survey, which polled 100 oil and gas companies, found that nearly half of the executives (48%) anticipate diesel prices taking “more than four quarters” to return to 2025 levels. This is compared to 36% who expect the same for gasoline, as reported by the Dallas Fed on Wednesday.
The survey reflects the long-term impact of the fuel crisis, triggered by the Iran war and Ukraine’s attacks on Russian refining facilities, on the global energy markets.
One respondent from an oil and gas support services company emphasized, “Diesel is the mother’s milk of the economy. We are just starting to see the impact on the wider economy.”
Another respondent doubts that Persian Gulf crude exports will fully recover and expects a lower “normal” baseline once the conflict ends.
Trump Weighs Diesel Export Ban
The ongoing fuel crisis has been a matter of concern for the Trump administration. The fuel crisis has been a pressing issue, with diesel prices remaining near record highs. According to AAA, the average diesel price on Wednesday was $6.4139 per gallon, about a 73% increase from a year ago.
President Donald Trump has been considering a diesel export ban as a potential solution to the crisis. Trump said his administration discusses the issue daily but believes it could slightly raise gasoline prices while lowering diesel prices.
Trump’s administration has been under pressure as the fuel crisis threatens the Republican Party’s midterm election campaign. The White House has reportedly been coordinating with European allies on a potential diesel export ban while urging countries to release strategic reserves and discussing increased Chinese refinery production, according to the report.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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