US fuel prices hit September highs as Brent crude tops US$100
US regular petrol averaged US$4.22 a gallon and diesel US$5.94 on Wednesday, with futures pointing to further pressure on diesel prices.
US petrol prices have reached their highest reported level for September, while diesel prices touched a new record as Brent crude moved above US$100 a barrel, according to Yahoo Finance.
US regular petrol averaged US$4.22 a gallon on Wednesday, more than US$1 above the same time last year, AAA data showed. Prices have eased from a May peak above US$4.50 but remained at record levels on a seasonally adjusted basis, JPMorgan analysts wrote.
Diesel averaged US$5.94 a gallon, with futures indicating the benchmark could reach US$6 in the coming days. Petrol and diesel futures were up more than 78 per cent and 124 per cent respectively year to date, according to AlphaSpace data.
The report attributed widening gaps between crude and refined fuel prices to energy bottlenecks and refining constraints linked to the US-Iran conflict. Andy Lipow of Lipow Oil Associates said the higher prices were beginning to affect fuel demand.
The pressure is more severe in California, where diesel prices were nearing US$8 a gallon and some cities were averaging almost US$8.50, according to GasBuddy. Higher diesel costs are expected to lift expenses across farming, trucking and deliveries, with potential effects on the price of goods and services.
