From Yahoo Finance: 2025-05-13 13:03:00

Diesel prices have dropped for the fifth consecutive week, reaching $3.476 a gallon. However, the recent rise in ULSD prices on the commodity exchange could signal the end of this downward trend. ULSD settled at $2.1441 a gallon on Tuesday, the highest since April 24, driven by global factors.

The increase in ULSD prices can be attributed to rising financial assets following the China-U.S. tariff agreement. Despite increased OPEC+ production, key crude benchmarks like Brent have risen to $64.96 a barrel. Market pressures are also fueled by tightening worldwide inventories, impacting ULSD prices in the U.S.

The recent EIA inventory report showed ULSD inventories in the U.S. at 97.3 million barrels, lower than the average for the first week of May in previous years. Tight inventories have created backwardation in the ULSD market, where current month prices are higher than future months, reflecting market imbalance.

Read more: Fifth straight drop in benchmark diesel comes as futures prices rise sharply