The weekly Department of Energy / Energy Information Agency’s average retail diesel benchmark price recorded the largest decline since late March.
Prices posted on Monday fell 3.2 cents / gallon to $ 3.324 / gallon. This was the biggest drop since the fall of 3.3 cents on March 29, when the price was $ 3.161 per gallon.
For the fourth straight week, DOE has announced prices that have fluctuated in a direction that is different from the significant fluctuations in prices of ultra-low sulfur diesel on the CME Commodity Exchange. Normally, the two prices do not seem to be related. A retail price survey that produces DOE / EIA prices will be conducted during the day on Monday, and ULSD price fluctuations on that day will not affect pump prices.
On August 2, CME’s ULSD price fell 2.69%, dropping sharply in one day, but DOE / EIA prices rose 2.5 cents. The following week, the same day that CME’s ULSD fell 1.8%, DOE prices fell 0.3 cts / g, which is considered a significant fall. Last week, CME prices fell 1.15%. This is also a relatively big move. DOE / EIA prices began to catch up with the broader market decline, falling 0.8 carat / g. This was the biggest drop in four months.
On Monday, a 3.2 cent drop was seen as the broader commodity market reversed the sharp decline posted last week. A 5.08% increase in ULSD prices at CME on Monday added 9.69 carats / gallon to that price and settled at $ 2.0051 / gallons. This is the largest daily increase since the 9.29 carat / gallon increase on May 5, last year.
Due to Monday’s move, CME prices are about 4.3 cents lower than last Monday’s $ 2.0483 / gallon settlement.
The rise in commodity prices on Monday was backed by a sharp rise in asset prices in the stock market as investors seemed to have eased concerns about economic growth with positive news about the spread of COVID delta variants in China. bottom. This has been a major contributor to the recent weakness of the oil market, as concerns about slowing economic activity lead to concerns about softening oil demand.
https://www.freightwaves.com/news/biggest-downward-move-in-doe-eia-diesel-price-since-late-march The largest decline in DOE / EIA diesel prices since late March