• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 18 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 days Does Toyota Know Something That We Don’t?
  • 1 day America should go after China but it should be done in a wise way.
  • 7 days World could get rid of Putin and Russia but nobody is bold enough
  • 9 days China is using Chinese Names of Cities on their Border with Russia.
  • 10 days Russian Officials Voice Concerns About Chinese-Funded Rail Line
  • 10 days OPINION: Putin’s Genocidal Myth A scholarly treatise on the thousands of years of Ukrainian history. RCW
  • 10 days CHINA Economy IMPLODING - Fastest Price Fall in 14 Years & Stock Market Crashes to 5 Year Low
  • 9 days CHINA Economy Disaster - Employee Shortages, Retirement Age, Birth Rate & Ageing Population
  • 19 hours How Far Have We Really Gotten With Alternative Energy
  • 10 days Putin and Xi Bet on the Global South
  • 10 days "(Another) Putin Critic 'Falls' Out Of Window, Dies"
  • 11 days United States LNG Exports Reach Third Place
  • 11 days Biden's $2 trillion Plan for Insfrastructure and Jobs
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Weak U.S. Diesel Demand Intensifies Recession Fears

  • Diesel demand has been declining in the United States in recent months, sending both wholesale and retail diesel prices lower.
  • The decline in diesel demand points to a slowdown in industrial and freight activity and has increased fears of a recession in the U.S.
  • Transportation and logistics companies have already flagged a freight recession and warned of an industrial recession.

Diesel demand in the United States has been falling in recent months, also reflected in declining wholesale and retail diesel prices, pointing to a slowdown in industrial and freight activities and intensifying fears of a recession in the world’s largest economy.  

Major U.S. transportation and logistics companies missed Wall Street forecasts in their Q1 earnings and flagged a “freight recession” last week.

“To start, we're in a challenging freight environment where there is deflationary price pressure for an industry that continues to face inflationary cost pressures. Simply stated, we're in a freight recession,” J.B. Hunt president Shelley Simpson said on the earnings call last week.

Lower trucking activity and slowing U.S. economic growth, which was 1.1% in the first quarter, down from 2.6% in Q4 2022, don’t bode well for domestic diesel demand, analysts say.

“If you were looking at it in the closet, and not knowing what the wider economy was doing, you would say we’re seeing some sort of an industrial recession,” Tom Kloza, global head of energy analysis at the Oil Price Information Service (OPIS), told the Financial Times.

The benchmark diesel futures for fuel delivered into New York Harbor slumped last week to a 15-month low as the fears of a diesel shortage from last autumn have now turned into fears of weak diesel demand due to a flailing economy. 

Retail prices for diesel have also been falling for most of this year.

The national average price of diesel has fallen by 5.3 cents in the last week and stands at $4.07 per gallon, $1.18 lower than at this time last year, Patrick De Haan, head of petroleum analysis at GasBuddy, said on Monday.

“Diesel prices have followed, falling to their lowest in over 13 months as demand remains weak due to concerns over the economy,” De Haan noted.  

By Tsvetana Paraskova for Oilprice.com

ADVERTISEMENT

MoreTop Reads from Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment
  • Mike Lewicki on May 02 2023 said:
    it's so elastic...

    End user prices will cone down right....

    up goes usage.

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News