U.S. diesel prices hit record high

• U.S. national average diesel price hit a record $5.85 on September 4th, up significantly from $3.71 last year.
• Russia's extended ban on diesel exports and lower U.S. distillate production are contributing to the growing spread between crude and diesel prices.
• High diesel prices are problematic for the upcoming harvest season, which peaks in October, as farm equipment relies heavily on diesel, indicating limited demand destruction.

The discussion centers on U.S. diesel prices hitting a record high of $5.85, driven by factors like Russia's extended diesel export ban and lower U.S. distillate production. This situation is particularly problematic as the harvest season begins, increasing demand for diesel, with limited potential for demand destruction due to its commercial necessity. The outlook suggests continued inflationary pressure.