Marketplace · Monday, August 31, 2026
Joe Delara of Rabo Bank predicts rising diesel prices and continued inventory drops, exacerbated by harvest season demand. He notes that diesel demand is inelastic, meaning users will pay higher prices to secure supply for essential activities like farming and shipping.
“I just have nothing positive to say that diesel prices are going to go up and diesel inventories are likely to continue dropping and this is a global problem.”
“He says demand for diesel is less elastic than demand for gasoline.”
“You can't just stop using it. If you stop using it, it means you're not doing the thing, right? It means you're not literally harvesting crops, right? Or you're not shipping things.”