Production Increase May Not Blunt Seasonal Diesel Strength

Oil prices have held fairly steady recently, thanks to a generally level supply and demand balance.

Diesel Pump
Diesel Pump
(Farm Journal)

Oil prices have held fairly steady recently, thanks to a generally level supply and demand balance. Patrick DeHaan with GasBuddy.com reports OPEC+ announced plans to increase oil production in October by roughly 180,000 barrels per day. But DeHaan believes global demand will be able to soak up the increased supply, adding weight to gasoline prices.

Not so for diesel. When it comes to diesel prices, DeHaan expects the opposite saying, “As we see farmers now starting to harvest their crops, we could see diesel demand go up, and that could contribute to higher diesel prices in the weeks ahead,” also noting increased demand for heating oil as temperatures drop.
Read more from Pro Farmer.

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