Unbelievable turn of events for diesel and heating oil today.
While I noticed yesterday that heating oil prices were up nearly double they should be, I read that diesel is what is currently driving refiners to refine more fuels.
Right now, the profit for refining oil into heating oil/diesel is way more than the profit for gasoline. Overall, the crack spread, or profit of refining one barrel of oil is $13.18, thanks largely to the 40 cent premium heating oil is over gasoline.
Part of this run-up in heating oil may be largely due to the fact that the U.S. Northeast will be colder than average for at least two more weeks into April, putting more strain on truckers who also rely on the diesel fuel, which is also used for heating oil.
Unfortunately this means truckers can expect to pay at least 20 cents more per gallon in the coming days, with prices in Grand Rapids for diesel approaching $4.50/gallon.
Time to go get a moped?
I think so.