The Department of Energy/Energy Information Administration (DOE/EIA) diesel price saw a small decline this week, notable when compared to past trends. Currently at $4.022 per gallon, it has decreased by 3.6 cents from the previous week, marking a downward trend over the last three weeks. A year ago, diesel prices were higher at $4.282 per gallon. Despite a 2.2% decrease in West Texas Intermediate (WTI) crude prices over the last 12 months, diesel prices have fallen by 6%. This reduction is welcomed news for diesel consumers as historically, diesel prices have remained significantly higher compared to crude prices. Factors contributing to this decline include a narrowing spread between Brent and ultra low sulfur diesel (ULSD) prices, tighter inventories, and increased renewable diesel (RD) capacity. While crude prices have remained relatively stable over the past year, diesel prices have experienced a more significant decline due to various market dynamics, including increased refining capacity and the rise of renewable diesel production.
Inspired by: https://www.freightwaves.com/news/12-month-story-crude-oil-prices-move-slightly-lower-but-diesel-falls-further