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
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now