In the graphic below, it appears that the spread between the price of gasoline and the price of diesel is narrowing.
It may simply mean nothing more than supply and demand as we move into the summer driving season.
However, when one looks at
- GDPNow forecast for 2Q15, forecast for 0.7% growth, and shrinking
- 1Q15 GDP of 0.1 to 0.2% and possibly will be revised downward
- industrial output declines (in today's report) for the second consecutive month
- the marked decline in activity in the US oil and gas industry
Is it possible the price of diesel is reflecting lower rail activity and lower trucking activity? Someone else noted the problem with the rail industry also.
Perhaps this snapshot in time is nothing more than an anomaly that will go away next week, but if nothing else, something that might be interesting to watch.
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