The benchmark price of diesel has dropped significantly, marking the largest decrease in a five-week period in two years. The average weekly retail diesel price fell by 6.3 cents per gallon to $3.544, down from $3.868 before the decline. This is the most significant drop in 5 weeks since December 11, 2023.

The latest diesel price is the lowest since June 11, at $3.471 per gallon, reflecting market stabilization. Uncertainty stemming from U.S.-Venezuela relations may impact Venezuelan oil output, potentially affecting global oil markets long-term. Venezuelan oil production has declined from 3.5 million barrels/day to about 1 million b/d.

Geopolitical uncertainties also surround Russian oil output. Despite slight declines in ULSD prices, Brent settled at $62.07/barrel, up from $60.56/b a week ago. Forecasts of oil supply glut have driven prices down, but geopolitical factors can temporarily overshadow supply-demand dynamics in oil markets.

Read more at Yahoo Finance: Benchmark diesel down yet again, five straight weeks of declines