Benchmark Diesel Prices Rise, Signaling Potential Market Upward Trend

The benchmark price for fuel surcharges rose this week, signaling a potential upward trend in the market. The average weekly retail diesel price increased by 1.2 cents/gallon to $3.739/g, the fourth increase in the last five weeks.

OPEC+ agreed to add 548,000 barrels/day of oil back to the market in August, exceeding market expectations of a 411,000 b/d increase. This decision marks a shift from previous output cuts, despite forecasts of a surplus in the oil market for the second half of 2025.

The International Energy Agency reported that global oil demand is expected to increase by 720,000 bd this year. Despite the larger than expected increase in oil supply, prices rose sharply over the weekend, with ultra low sulfur diesel on the CME commodity exchange climbing 5.13 cts/g.

Saudi Arabia announced an increase in its price formula for August sales, reflecting confidence in a strong market. The Kingdom’s crude pricing is calculated as a differential against key benchmarks, indicating market strength and demand.

Read more at Yahoo Finance: Small increase in benchmark diesel is fourth in five weeks