“The orange line on that chart, what I've done is I've bootstrapped a crude price from diesel prices. So the equivalent oil price, looking at diesel, is over $160 a barrel.”
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Said on Monetary Matters with Jack Farley
WSJ What’s News · Will Trump’s Russian Diesel Deal Lower Prices?
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argued that sentiment, not the small diesel import volume, will drive price changes
“The orange line on that chart, what I've done is I've bootstrapped a crude price from diesel prices. So the equivalent oil price, looking at diesel, is over $160 a barrel.”
“Diesel prices don't depend on the volume that Russia sells. They just don't.”
“That one addition doesn't cost him much in delivery time, but it changes the entire conversation a price shopper would have to have with themselves… creates enough differentiation to make at least some of them stop and think before jumping ship over a small price difference.”
“Last year the average price, and the price was pretty stable, was $3.50 a gallon for diesel in the U.S. It is right now $6.30 a gallon.”
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