U.S. Benchmark Diesel Rises 3.5 Cents to $5.348 a Gallon as ULSD Futures Slide

1 articles · Updated · FreightWaves · Aug 4

$5.348 a gallon became the new U.S. benchmark retail diesel price, up 3.5 cents from the prior week and marking a fourth straight increase totaling 77 cents.
CME ULSD futures moved the other way, settling Monday at $3.8772 a gallon after three straight declines and falling another 4.34% Tuesday morning on hopes the Strait of Hormuz will reopen.
That disconnect matters because the DOE/EIA benchmark used for fuel surcharges lags fast-moving wholesale markets, leaving diesel buyers facing sharp short-term uncertainty at the pump.
Trump's push for oil companies to cut retail prices may have limited effect because refiners and integrated majors set wholesale rack prices, while station owners control pump prices and crude and blendstock costs remain market-driven.
Political pressure to hold down wholesale prices could squeeze independent refiners and unbranded retailers, potentially tightening supply instead of quickly lowering diesel prices.