The benchmark price of retail diesel is nearly the same as a year ago, having recovered from lower numbers since mid-July 2024. The average weekly retail diesel price rose 5.4 cents/gallon to $3.812/b, the highest in over a year. Diesel prices up 36.1 cts/g since June 2.

The increase in diesel prices is partially due to rising crude oil prices. While crude increased by 7%, ultra low sulfur diesel on the CME exchange surged by 22.7%. The front month ULSD price on CME has widened the diesel/Brent spread to over 85 cts/g.

Global diesel inventories are below last year and the five-year average. U.S. diesel stockpiles are at their lowest since 1996. Refiners are shifting distillate feedstocks to produce more jet fuel, reducing diesel output. Refinery closures and increased demand for electric vehicles also impact diesel supplies.

Tight diesel market conditions may lead to a challenging winter. Refinery operations are slow to adjust ratios between gasoline and diesel production. New sanctions on Russia, wildfires affecting exports, and refinery changes are contributing to diesel supply constraints. Demand for diesel remains strong despite shifts in refining operations.

Read more at Yahoo Finance: benchmark retail diesel price is about where it was a year ago