Rising oil prices and Middle East supply disruptions have pushed U.S. diesel to record highs, fueling inflation concerns that are weighing on the S&P 500 and driving 10-year Treasury yields above 5%.
WTI crude rose 4.4% to $105.83 on Middle East supply disruption, hitting a four-month high.
Brent crude closed at $108.75, up 2.9%, as Middle East supply concerns persist.
U.S. gasoline prices are rising sharply with a national average of $4.33, up 51% on the year.
Diesel prices hit a record high of $6.27 nationally, up 76% year-over-year, increasing economic cost pressures.
The S&P 500 fell for a second consecutive day as rising oil prices and Treasury yields pressure equities.
The 10-year Treasury yield closed above 5% for the first time since 2007, reflecting bond price declines.
Costco is limiting motor oil purchases due to supply shortages, indicating supply chain pressures but not a fundamental business change.
Global oil markets are in turmoil as Brent crude hits $108.75 and WTI climbs to $105.83 following supply disruptions in the Middle East. The resulting surge in fuel costs has pushed U.S. diesel to a record $6.27 per gallon, pressuring the broader economy and contributing to a two-day decline in the S&P 500. As Treasury yields breach 5%, supply chain constraints are forcing retailers like Costco to implement purchase limits on motor oil.
Prices are surging due to geopolitical instability in the Middle East, which has disrupted tanker traffic and damaged critical infrastructure like the Saudi East-West Pipeline.
Retailers like Costco are implementing purchase limits on motor oil due to supply shortages, while record-high diesel prices are increasing operational costs for essential sectors like trucking and agriculture.