Diesel demand fuelling oil prices – expert
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US-based energy economist Philip K. Verleger has said demand for diesel may be the key factor driving up the price of crude oil, Bloomberg has reported. Diesel prices are currently rising faster than gasoline, and Verleger believes that a greater supply of light low-sulphur crude oil (used to make diesel) is needed.
“”” O “Operators of refineries are responding to the rapid increase in diesel prices by bidding more and more for light, low-sulphur crude. The US could increase the available light-crude supply – and thus damp the surge in prices – by putting some of its reserve supply on the market,” Verleger said in an interview.
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