Record Fuel Prices Threaten Higher Food and Freight Costs

SPEAKER_1 (0:00)

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Luke Vargas (0:33)

Oil closes in on $100 a barrel as energy price anxiety mounts. Plus Canada ups the ante in its trade spat with the US as reciprocal tariffs kick in, and Germany's far-right AfD party delivers a jolt to the country's political system.

Bertrand Benoit (0:51)

If the AfD manages to form a government and rule the state, it would be the first government led by a far-right party in Germany since the end of World War II.

Luke Vargas (1:02)

It's Tuesday, September 8th. I'm Luke Vargas for the Wall Street Journal, and here is the AM Edition of What's News, the top headlines and business stories moving your world today.

Stock markets are slipping today as higher oil prices drag on investor sentiment. Brent Crude is trading just below $100 a barrel as supply disruptions in the Middle East and Russia continue to push up fuel costs. Yesterday diesel and gasoline prices hit fresh Labor Day records, and as commodities reporter Julia Petroni explains, the spike hasn't topped out yet.

Julia Petroni (1:40)

Analysts are telling me that prices could rise even faster as we head into the fall. And the reason is that across the Northern atmosphere, farmers are in harvest season, a time when they use large amount of diesel to power tractors and other machinery. And at the same time, colder weather means demand for heating fuel is likely to rise. On top of all of this, refineries typically carry out seasonal maintenance in the fall.

That means some processing capacity will temporarily be offline, just as demand for diesel and other fuels is picking up.

Luke Vargas (2:14)

With real economic consequences likely to fall.

Julia Petroni (2:18)

Diesel plays a huge role in the global economy.

It powers the trucks that move our food and everyday products, including groceries, clothes, and furniture, but also the heavy machinery you see on construction sites and even ships carrying cargo across the world. And it's not just about transportation. Diesel is also widely used for heating, making it an important part of how homes, businesses, and industries keep running. So if that supply crunch lasts for a while, the effects can spread through the wider economy.

Luke Vargas (2:51)

Copper prices are also hitting fresh records, with buyers scrambling for the metal amid concerns over mine supply and the prospect of potential US tariffs. The bronze metal is also part of the AI trade, as it's used widely in power grids, data centers, EVs, and other energy infrastructure. Copper prices have gained 16 percent so far this year.

Well, speaking of trade levies, Canada's retaliatory tariffs are taking effect today, hitting $20 billion in American goods. Affected products include steel, aluminum, cheese, and clothing at rates of 15, 25, or 50 percent, which Canada says match Washington's tariffs. Prime Minister Mark Carney says the fight is necessary because US demands would hollow out key Canadian industries.

SPEAKER_5 (3:39)

We don't want to make gains in the short term that then are taken away a few months later or a year later from that. That's not fair to our workers, our companies, our communities. So that's part of the reason why the deal wasn't good enough was in the forest product sector specifically.

Luke Vargas (3:54)

Yesterday, President Trump threatened to ban the sale of aircraft from Canada's Bombardier unless they manufacture their planes in the United States.

Accident investigators are probing whether an Amazon cargo plane crashed in Miami on Sunday, killing five people on the ground, may have approached the airport too fast, and should have performed a routine go-around maneuver to redo its landing attempt. The Boeing 767 hit a pair of vehicles before coming to rest 1,300 feet past Miami's runway 30, which wasn't equipped with crushable material that's designed to help planes come to a quick stop. While FAA and airport officials said a so-called EMAS system wasn't needed on the runway, National Transportation Safety Board Chairwoman Jennifer Homendy said that investigators would be looking into the effect that it might have had.

Jennifer Homendy (4:43)

The questions are on EMAS and whether that would have helped prevent this tragedy and should EMAS be everywhere at every airport, that will be a key part of our investigation.

Luke Vargas (4:56)