The national average diesel price rose by 3.2¢ to $3.899 per gallon in the week of Feb. 5, marking the first consecutive weekly increase in 2024. This increase follows a 6.1-cent rise over two weeks, with diesel prices now 64 cents lower than in 2023. While diesel prices increased in eight of ten regions surveyed, gasoline prices also climbed by 4.1 cents to $3.136 per gallon, still lower than a year ago.

The uptick in prices is attributed to a strong U.S. economy, evidenced by the addition of 353,000 jobs in January, higher than analysts’ expectations. Specifically, the transportation and warehousing sector added 15,500 positions, including 2,400 in for-hire trucking. As a result, the Energy Information Administration (EIA) forecasts an average national diesel price of $3.94 per gallon for the first quarter of 2024.

Analysts predict strong support for diesel prices in February due to winter weather and refinery maintenance. Distillate inventories, mainly comprising diesel, decreased by 3.2 million barrels, potentially leading to a midwinter price rally. Looking ahead, EIA anticipates further increases in diesel prices, with Brent crude prices expected to rise, driven by supply disruptions in the Middle East.

In response to market shifts, Phillips 66 plans to convert its Rodeo facility near San Francisco to renewable fuels production, reflecting a broader trend toward renewable diesel production in the U.S. EIA expects significant growth in renewable diesel production in the coming years, highlighting the evolving landscape of the energy industry.

Inspired by: https://www.ttnews.com/articles/diesel-price-rises-0205