CNBC on Friday morning<\/a>. \u201cWhat you\u2019re finding is because of the closure\u201d in the Strait of Hormuz, \u201cshipping has to find new routes around to continue to deliver the products that society desperately needs.\u201d<\/p>\n\u201cAbout half of Russia\u2019s refinery capacity has been taken out from the Ukraine bombing,\u201d he added. <\/p>\n
\u201cThat shortage of refining capacity and availability to the world is what\u2019s driving product prices as high as it is, and frankly, diesel is the key crunch point here because it is so critical to economic growth,\u201d Woods continued.<\/p>\n
Since the start of the year, the average nationwide price for diesel fuel has risen 78%. New York-traded diesel futures have soared 130% since the start of the year, likely indicating more price rises could still come at the pump.<\/p>\n
Both Exxon and Chevron said that they were running their refineries at maximum output to continue making as much diesel as possible.<\/p>\n
Trump has taken specific note of the impact that diesel could have on the economy. The administration has quickly issued multiple orders and policies in an attempt to bring prices down.<\/p>\n
The president signed an order allowing more widespread use of an off-road dyed variety of diesel, has pressured European allies to release more of the diesel reserves into the global market, and has announced a deal with Putin for some of that country\u2019s diesel supplies.<\/p>\n
Trump\u2019s latest move came last week, when he announced $150 million in Defense Production Act funding to \u201cexpand petroleum production, storage, and logistics at refineries across.\u201d<\/p>\n
The moves have not meaningfully brought prices down.<\/p>\n
On Friday, Woods said his refineries were already being pushed to the limit. \u201cWe are at record levels of utilization for our refineries,\u201d he said on CNBC. <\/p>\n
\u201cIf you look at North America, we produce record volumes of diesel. That\u2019s all been a function of trying to drive more product into the marketplace to meet that demand and to drive costs down.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"It\u2019s a good time to be an oil company. The two largest U.S. oil companies, ExxonMobil and Chevron,…\n","protected":false},"author":2,"featured_media":661904,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[114,85,46],"class_list":["post-661903","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/661903","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=661903"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/661903\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/661904"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=661903"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=661903"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=661903"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}