As brent crude futures soar toward $100, it's creating a new battle in the Federal Reserve's effort to fight inflation. One money manager warns another rate hike is likely.
Infuriating price increases are the topic of the day, and but like the 80’s, rising inflation is driven largely by energy and the price of oil. It's now less about the supply of oil, and more about refining capacity.
The move is contingent on legislative action, which would temporarily lift the 18.3 cents tax per gallon on gasoline and 24 cents tax per gallon on diesel during the summer months.
Diesel prices are causing sticker shock, as fears of a possible diesel shortage are growing. It’s not just retail diesel prices that are rapidly rising. Some farmers report booking off-road diesel for above $5.
Diesel prices hit $5.58 a gallon on Friday, smashing another record. With NOAA predicting an above-normal hurricane season, it could introduce more trouble for already short diesel supplies.
Even with the partial ban by the European Union, one industry expert says it's possible diesel prices will see a slight reprieve in the coming weeks; however, it won't come in the form of dollars.
U.S. diesel prices are the highest ever, with warnings of shortages, especially in the eastern U.S., and the most intensive part of the farming season is still ahead.
