Houston—Despite prices at multiyear lows, diesel demand has not picked up with the planting and harvesting season in California due to the drought, trade and government sources said. “Anything that keeps farmers out of the fields, whether it’s wetness or drought, will hurt diesel consumption,” a diesel trader said. Diesel is used to power tractors, trucks that transport food and livestock, and well pumps and irrigation systems. Trade sources said the tepid diesel demand from farmers is trickling down to the spot market.
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