Crude oil prices suggest inflation is staying in check. The diesel market is telling a very different story.
While benchmark crude, as tracked by the United States Oil Fund (NYSE:USO), has hovered around $72 a barrel, diesel crack spreads—the premium refiners earn by converting crude into diesel—have surged to roughly $77, according to market data highlighted by market commentator Lukas Ekwueme. In practical terms, diesel is behaving as if crude were closer to $140 a barrel, a divergence that could have far-reaching implications for inflation and global supply chains.
