Diesel Gains Slow to 2.6 Cents as 11-Week Rally Continues

Key Details Benchmark diesel prices rose for the 11th consecutive week, but the momentum is cooling. The Department of Energy/Energy Information Administration reported ultra low sulfur diesel (ULSD) climbed just 2.6 cents/gallon to $5.401/g, marking the smallest weekly gain in recent weeks. Why It Matters This represents a dramatic slowdown from the previous three weeks, which saw increases of 96.2, 21.2, and 30.4 cents/gallon respectively following tensions in the Iran region. The cumulative impact is significant - diesel prices have risen $1.942/gallon since January 12, when ULSD was $3.459/gallon. Historical Context At $5.401/gallon, retail diesel has reached levels not seen since November 2022, during the Ukraine crisis aftermath. That year saw 32 weeks above the $5 mark, creating serious headwinds for fleet operators nationwide. Futures Market Signals CME diesel futures tell an important story about supply tightness. The market structure shows backwardation - spot barrels command premium prices over future months. March 20 futures hit $4.6084/gallon, equivalent to roughly $193.55 per barrel. Current spot physical diesel for immediate April delivery will likely trade significantly higher than May futures, directly impacting wholesale pricing decisions across regional markets.