Posted by Andy Martin on August 01, 2018 at 15:30:21 from (209.213.149.60):
In Reply to: $10 Diesel? posted by Dean on July 31, 2018 at 18:27:53:
If you read the whole article it clearly indicates the fear mongering is just that.
The fear that farmers won't plant as much when fuel prices rise has not been proven in the past. Farmers have been pretty good at borrowing themselves into bankruptcy in order to keep planting.
1/2% sulfur in diesel was so expensive to tool up for that a lot of refineries refused to do so, now there is an undercapacity which has kept diesel prices high.
The U.S. will win in this fuel requirement. We already have overproduction and can tool up for more low sulfur production quickly should the market prices support the expansion costs. And Saudi Arabia is reducing production to prop up prices. Pretty easy for them to raise production of light sweet crude when the price rises moderately.
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