Gasoline Goes Galactic, Diesel Spikes
Gasoline Goes Galactic: Prices Jump, Diesel Spikes, and the White House Feels the Burn
Thank you President Trump! This is about a week old. It still has relevance to what this fool is doing to the US Economy. The national may yet slip into a recession.
“Oil Prices Post Biggest Monthly Surge in History,” OilPrice.com. Tom Kool
– Nationwide US gasoline prices topped $4 per gallon for the first time since August 2022, jumping to $4.018/USG as of March 31, raising domestic political risks for the Trump administration.
– With gasoline now up by more than $1 per barrel since the US attack on Iran, prices keep on rising despite the White House’s temporary waiver on the Jones Act to allow foreign-flagged vessels to move US fuel.
– California posts the highest gasoline prices across the country, with the cost of a gallon now at $5.887, up 27% from a month ago.
– The average national diesel price rose to $5.454 per gallon by the end of March, logging an even more impressive 45% month-over-month spike and creating a huge inflationary risk for consumer goods ahead.
– Arguably, the Trump administration’s last-resort lever to lower gasoline prices in the short term would be to introduce export restrictions – in the meantime, US gasoline outflows continue to average around 800,000 b/d, with Mexico taking in a third of those volumes.
Market Movers
– Kuwait Petroleum Corporation’s very large crude carrier Al Salmi was targeted by a swarm of drones believed to be Iranian on Tuesday morning, causing damage to the vessel and sparking a fire onboard the tanker that is fully laden with 280,000 tonnes of crude.
– Brazil’s state oil firm Petrobras (NYSE:PBR) has reported another discovery in the offshore Campos basin, next to the already producing Marlim field, finding crude of ‘excellent quality’ at a water depth of 1,178 metres.
– Portugal’s oil major Galp (ELI:GALP) reported a ‘significant’ upgrade to its resource estimate for the giant Mopane discovery offshore Namibia, from 0.875 billion boe to 1.38 billion boe.
– US oil major Chevron (NYSE:CVX) said that its Wheatstone gas liquefaction facility will likely need a ‘number of weeks’ to return to full production rates after Tropical Cyclone Narelle damaged equipment both onshore and offshore.
Tuesday, March 31, 2026
Oil prices are set to log the highest monthly gain ever after the global economy experienced its worst-ever oil and gas supply disruption globally. With the Strait of Hormuz now officially closed and Tehran adding insult to injury by striking a Kuwaiti tanker in UAE waters, ICE Brent will roll over into April at almost $120 per barrel. In doing so, prices brushed aside US President Trump’s comments that the US might walk away from its so-called military operation without even opening the Hormuz.
Nope, not gonna’ do it. Not gonna’ say a word about my electric car
(yes, Dr Joel, ’round here it’s about half lng and coal)
There is a new gas station being built on my daily route. Not quite open yet, the pumps are still roped off, but the price sign is lit and the price has been going up a dime a day for the last three days. I hope they are just testing. Unfortunately the last price on that sign was the price I last paid at my regular station. $5.39 for regular unleaded.
Jane:
I see it in AZ also. Immediate pricing increases regardless of supply chain issues or production. The United States can survive on its own where Europe and other nations lack resource and depend on the Middle East. Trump has little to lose in that respect. He is going to crash the US economy.
The US prefers heavy oil as much of its refining capacity is doing such. Other national lack such capability and rely on the Middle East and other refining.
AFPM “What’s the difference between heavy and light crude oils? And why do American refineries need both?”
Also, AI says:
“U.S. refineries are not technically incapable of processing light oil but are optimized for heavy oil, making it less economical to handle large volumes of domestic light shale oil. About 60–70% of U.S. capacity is designed for heavy crude, and upgrading these assets for light oil is costly. Consequently, the U.S. exports light oil while importing heavier, cheaper alternatives.”