Siebert Financial sees diesel costs sustaining inflation despite falling oil prices
SIEB•Siebert Financial warned that diesel costs may keep inflation elevated despite falling crude prices. Diesel averaged about $6.17 per gallon, while distillate inventories were roughly 8% below their five-year average.
1. Diesel costs and inflation
Siebert Financial warned that falling crude prices may not ease inflation quickly, leaving businesses exposed to elevated costs and further monetary tightening. Brent settled at $95.82 and WTI at $88.74 on Thursday, both about 2.5% lower for the week; diesel averaged approximately $6.17 per gallon earlier in the week, and distillate inventories were roughly 8% below their five-year average.
2. Supply and rate outlook
Global oil stockpiles have fallen by an estimated more than 460 million barrels since the war began, creating demand for replenishment. October consumer prices rose 0.4%, and futures markets priced a December 9 Federal Reserve rate hike as certain.
