• ITVI.USA
    15,577.910
    -10.310
    -0.1%
  • OTRI.USA
    22.530
    -0.120
    -0.5%
  • OTVI.USA
    15,585.590
    -10.110
    -0.1%
  • TLT.USA
    2.770
    0.010
    0.4%
  • TSTOPVRPM.ATLPHL
    3.390
    -0.060
    -1.7%
  • TSTOPVRPM.CHIATL
    2.840
    -0.080
    -2.7%
  • TSTOPVRPM.DALLAX
    1.510
    -0.070
    -4.4%
  • TSTOPVRPM.LAXDAL
    3.290
    0.080
    2.5%
  • TSTOPVRPM.PHLCHI
    1.980
    -0.060
    -2.9%
  • TSTOPVRPM.LAXSEA
    3.900
    0.100
    2.6%
  • WAIT.USA
    124.000
    -3.000
    -2.4%
  • ITVI.USA
    15,577.910
    -10.310
    -0.1%
  • OTRI.USA
    22.530
    -0.120
    -0.5%
  • OTVI.USA
    15,585.590
    -10.110
    -0.1%
  • TLT.USA
    2.770
    0.010
    0.4%
  • TSTOPVRPM.ATLPHL
    3.390
    -0.060
    -1.7%
  • TSTOPVRPM.CHIATL
    2.840
    -0.080
    -2.7%
  • TSTOPVRPM.DALLAX
    1.510
    -0.070
    -4.4%
  • TSTOPVRPM.LAXDAL
    3.290
    0.080
    2.5%
  • TSTOPVRPM.PHLCHI
    1.980
    -0.060
    -2.9%
  • TSTOPVRPM.LAXSEA
    3.900
    0.100
    2.6%
  • WAIT.USA
    124.000
    -3.000
    -2.4%
FuelNews

Diesel price up eighth straight week; signs of weakness in commodity market

Final DOE/EIA diesel price shows more than 44-cent drop from first price of 2020

The Department of Energy and its Energy Information Administration posted the final average weekly retail diesel price for 2020, with the important benchmark rising for the eighth consecutive week.

The increase of 1.6 cents per gallon to $2.635 per gallon is the smallest jump during that eight-week period since a 1.1-cent increase on Nov. 9 that kicked off the stretch. But it means that the price, used as the basis for most diesel fuel surcharges, is up 26.3 cents a gallon since the price of $2.372 a gallon on Nov. 2, the price posted by EIA just before the string of increases began. That Nov. 2 price also was the lowest number posted all year.

With this week’s price being published, the EIA has posted its last number for calendar 2020. The bottom line: The benchmark average retail diesel price fell 44.4 cents a gallon over the course of the year, coming off its Jan. 6 posting of $3.079 a gallon. That also was the highest price for the year.

Other features of oil markets in the past week:

— The small increase posted this week comes after wholesale numbers have been trending slightly down. The national average wholesale diesel rack price according to the ULSDR.USA data series in SONAR was $1.631 a gallon on Monday. That’s down from $1.65 on Dec. 19 and 21.

— On the CME commodity exchange, where ultra low sulfur diesel climbed as high as $1.513 a gallon from a Nov. 18 recent low of $1.2042 a gallon, a slight recent pullback is evident. ULSD settled Monday at $1.479 per gallon, down 1.5% from the Christmas Eve settlement. The decline came even as equity markets hit new highs Monday. Oil and stock prices have tended to move in tandem in recent weeks. 

— Spreads between diesel and Brent, which have expanded as diesel outperforms the crude benchmark, have been narrowing slightly, indicating some weakness of the product. The movement has been fairly small, with the front-month price of ULSD against Brent slipping Monday to $11.25 a barrel from $11.615 just two trading days earlier. 

More articles by John Kingston

Key price spread in diesel market affirms tightening inventories

Diesel markets closing out a strong November

Diesel buyers have a problem: Capacity to make that fuel is getting cut

John Kingston

John has an almost 40-year career covering commodities, most of the time at S&P Global Platts. He created the Dated Brent benchmark, now the world’s most important crude oil marker. He was Director of Oil, Director of News, the editor in chief of Platts Oilgram News and the “talking head” for Platts on numerous media outlets, including CNBC, Fox Business and Canada’s BNN. He covered metals before joining Platts and then spent a year running Platts’ metals business as well. He was awarded the International Association of Energy Economics Award for Excellence in Written Journalism in 2015. In 2010, he won two Corporate Achievement Awards from McGraw-Hill, an extremely rare accomplishment, one for steering coverage of the BP Deepwater Horizon disaster and the other for the launch of a public affairs television show, Platts Energy Week.

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