It’s now become “unavoidable” that diesel prices across the U.S. will reach an average of $6 a gallon for the first time in history, according to GasBuddy’s head of petroleum analysis.
Patrick De Haan posted on Wednesday that diesel history was about to be made: “never seen before, days away, it’s now in the pipeline, unavoidable.”
As of Thursday morning, the average U.S. price of a gallon of diesel fuel, which is used in heavy transport, agriculture and operation of machinery, had reached $5.97. De Haan also reported that some gas pumps in California have already reached $9.99 per gallon, the highest price that can be entered into the dispenser.
Why are diesel, gas prices so high?
Oil prices across the world and here in the United States spiked after the U.S. attacks on Iran, which resulted in Iran retaliating by exerting its own influence over the Strait of Hormuz.
Repeated Iranian drone and missile attacks on transport ships passing through the strait nearly cut off the flow of oil through the strait, which set off a ripple effect that has led to more expensive fuel in the United States.
“Shipping traffic through the waterway dipped to its lowest level since May, with just two vessels passing on Saturday and six on Sunday, while Saudi Aramco facilities in Jazan were hit on Monday again and Qatar’s government said it was working with China to resume diplomacy,” De Haan wrote in a blog published Tuesday, Sept. 8.
Oil prices spiked on Sept. 9, the morning after officials said U.S. military forces destroyed five Iranian crude oil tankers. It was the latest escalation in the war between the United States and Iran.
The impact is borne out on the futures market, where traders guess how much a barrel of oil will cost somewhere down the line. Futures for Brent crude oil, the international benchmark, reached $100 per barrel for the first time since July. Futures for November delivery of West Texas Intermediate, the U.S. benchmark, also rose to around $95 per barrel.
Because there are several processing steps between a barrel of raw oil and the finished fuel product, fuel prices often lag behind crude prices. This means that the recent jump in crude oil prices might not reflect at the pumps until sometime later.
Oklahoma gasoline prices on the rise
Aside from diesel, regular unleaded gasoline is also creeping upward.
The national average for a gallon of gas is around $4.25.
At Oklahoma gas pumps, the statewide average has reached $3.81 per gallon. Before the Iran war started, gas in Oklahoma was about $2.40 a gallon. It hasn’t fallen below $3 since March.
This article includes reporting by USA TODAY reporter Rachel Barber.
This article originally appeared on Oklahoman: GasBuddy: Record $6 diesel is ‘unavoidable’ amid Iran oil disruptions