US diesel hit a record $6 a gallon Friday as Jeff Currie warns $5 gasoline is now “extremely high” odds before the midterms.
oilprice.com
The founder and CEO of Real Macro, who spent more than a decade running Goldman Sachs’ commodities research desk, told
Bloomberg Television on Friday that the odds of average U.S. gasoline hitting $5 a gallon before the November midterms are “extremely high.”
AAA data released the same day put the national diesel average at $6.0556, a record that’s up 14 percent in a month and more than 60 percent from a year ago. Regular gasoline sits near $4.27, according to AAA.
Currie’s case rests on refiners running out of room to maneuver. Plants can shift production between gasoline and diesel to chase whichever fuel is scarcer, but that flexibility has limits, and Currie argues the market is close to testing them. He told Bloomberg diesel could climb to $7 to $9 a gallon before the squeeze eases.
“Crude is the signal, and now we think about products,” Currie said. “They are the noise.”