The VW scandal has made diesel go…
The VW scandal has made diesel go from “darling to devil” but only after a number of refiners in Europe had spent $10 billion adding “cat-crackers” to make more diesel. With European car drivers rapidly moving away from diesel and back to gasoline, refiners have a surplus – some of which will go into mandated low-sulphur marine fuels, but the rest will flow into the world market…so Diesel prices in the US will decline relative to gasoline.
To be clear – this does not say diesel prices will decline in real terms – if crude oil continues to increase in price – so will diesel!
