Diesel prices rise due to surge in futures prices, attributed to trade talks

From Yahoo Finance: 2025-06-10 11:13:00

Diesel futures prices have surged, leading to a rise in the benchmark price for fuel surcharges. The Department of Energy reports a 2 cent/gallon increase to $3.471/gallon, a notable uptick after weeks of decline. Market analysts attribute the rise to trade talks and a potential trade resolution between the U.S. and China.

Oil prices are on the rise, with Brent crude settling at $65.29/barrel. Ultra low sulfur diesel (ULSD) futures prices have strengthened, outpacing Brent. The market is influenced by bullish sentiments due to trade talks and concerns about global oil demand despite OPEC+ plans to increase output.

Market dynamics show a shift in the ULSD market structure, with a narrowing backwardation. This trend suggests an alleviation of tight inventories. However, Brent market spreads have fluctuated widely, indicating market volatility. Analysts cite these trends as reasons to expect a stable oil market despite OPEC+ increases in output.

Analysts remain divided on the future of oil prices, with some pointing to the market’s backwardation as a sign of stability. The structure reflects tight inventories, supporting the view that increased OPEC+ output may not lead to a significant price decline. Factors such as plateauing oil output in various regions contribute to this perspective.

Read more: Benchmark diesel price turns higher as futures price rises