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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: koan who wrote (77295)4/5/2008 5:06:10 PM
From: Peter V  Read Replies (3) | Respond to of 116555
 
diesel is in high demand right now, and that's what drives the price.

European cars are about half diesel (or more). American smog laws and general preference for gasoline make diesel seem like an inferior and less desirable fuel. The rest of the world though, has embraced diesel, and the new diesel cars are a far cry from the rattly old Mercedes and VW Rabbit diesel cars that we had in this country.

Audi races a diesel, the R10, and it's kicking ass. It won Le Mans and the American Le Mans championship.

audi.com



To: koan who wrote (77295)4/5/2008 6:41:24 PM
From: robnhood  Read Replies (1) | Respond to of 116555
 
I wondered about that on CD's thread and RR said that diesel always rises in the winter since it is very similar to heating oil.



To: koan who wrote (77295)4/6/2008 1:16:20 PM
From: ajtj99  Read Replies (1) | Respond to of 116555
 
Diesel prices are high due to constrained US refinery capacity for diesel.

It is not something that is easy to solve. With the electric hybrid cars on the horizon and stronger emissions regulation, there is little incentive to expand diesel refinery capacity.

The refiners in Europe have a larger percentage of the capacity devoted to diesel, so they do not have the problem we have with regards to the premium diesel is commanding.