Diesel situation to get dire

Producers all over the country are struggling with high diesel prices. Well, prepare for prices to go higher. According to a recent report, crude-oil prices have begun another rise following increased demand after the recent earthquake in China. Analysts at Goldman Sachs boosted their oil price predictions for the second half of the year from $107 to a whopping $141 a barrel.

U.S. crude for June delivery was up $2.96 a barrel to $127.08 on the New York Mercantile Exchange. Earlier, crude hit $127.82, topping the previous intraday record of $126.98 set last Tuesday. A week ago, oil closed at a record $125.96 a barrel. "Everything the market looks at is bullish," Peter Beutel, an oil analyst at Cameron Hanover, wrote in a research note.

Diesel fuel has been in tight supply for the last several months following a cold winter in the Northern Hemisphere, and as the popularity of diesel cars grows in Europe and the developing world. With diesel prices outpacing gasoline, refiners in the United States have been ramping up production of diesel and sending it abroad. That has displaced some domestic gasoline production, helping push gas prices higher.

The downline impact of that kind of price escalation could wreak havoc on the general economy, not to mention the P&L sheet of the average producer. Your comment?