Diesel prices surge amid oil production cuts
U.S. diesel prices have soared back above the $4 per gallon mark and an ag economist says farmers have some decisions to make.
Greg McBride, Director of Brokerage with Allendale, tells Brownfield prices have risen more than 30-cents per gallon since the last week of June due to some cuts in oil production.
“Saudi Arabia has come in and said they will continue to do their voluntary (oil) cuts,” he said. “You’re talking about a million barrels per day there. That’s a strong reason to see some higher prices.”
He says the five-week uptrend could impact the bottom lines of farmers and ranchers.
“You may want to start looking at locking in some fuel prices for the fall to get you through harvest,” McBride said. “You may be able to slow play it for winter or next spring purchases, but probably take care of immediate needs fairly soon.”
McBride says fuel demand is at its peak point of the year.