Snip:
Average diesel prices have hit a record high in the United States, amid the US acts of aggression against Iran and the closure of the Strait of Hormuz, through which around a fifth of the world’s traded oil flows.
On Friday, average diesel prices soared to $5.85 a gallon for the first time since the start of the US-Israeli aggression against Iran on February 28.
Higher diesel prices, which are widely used in trucking, agriculture and industrial activity, mean higher transportation and production costs that subsequently raise food prices, bringing ripple effects for the economy and wider costs of living.
Some businesses have already passed on costs to consumers through added fees on online orders and mailed packages.
China decreased their imports by a lot, like ~5m barrels. But they didn’t replace all of that with their reserves, they also cut back on refinery runs, so they produced less gasoline, diesel, jet fuel and other stuff (lubricants etc.).
This kept the price of crude oil much lower than expected, but now that there is a shortage of finished products, China will probably restart imports and restart the refineries. We are already seeing them bidding for more crude oil.