The Department of Energy/Energy Information Administration reported a 0.5 cents/gallon decline in the average weekly retail diesel price to $3.80/gallon, effective Monday. This follows a previous decline of 0.7 cents/gallon the week before.

The price of ultra low sulfur diesel (ULSD) on the CME commodity exchange fell to $2.3176/gallon, down nearly 15 cents/gallon from the July 29 settle of $2.4638/gallon.

Oil prices, including crude and diesel, plummeted on Friday in response to weak monthly employment data. ULSD dropped over 6 cents/gallon, a 2.6% decrease, on Tuesday.

OPEC+ members announced an increase in output of 547,000 barrels/day, nearing a full reversal of over 2 million b/d in output cuts in effect since spring 2023.

Diamondback Energy CEO expressed a bearish view on the market in a letter to investors, citing a projected increase in global oil supply in the second half of the year.

Diesel strength relative to crude has slowed, with the spread between ULSD and Brent crude narrowing.

The spread between the first and second month ULSD price on CME has decreased, moving closer to contango due to growing inventories.

U.S. stocks of non-jet fuel distillates increased by almost 11 million barrels in three weeks, reaching 113.5 million barrels, the highest since March.

Read more at Yahoo Finance: Small decline in benchmark diesel price against a backdrop of falling futures numbers