DOE/EIA diesel price jumps to record $6.285/g
The Department of Energy’s weekly diesel price rose 31.8 cents to $6.285 per gallon on Monday, marking the highest level in the series’ history. AAA’s daily diesel price hit a new all‑time high of $6.2694/g and the SONAR DTS.USA series reached $6.26/g, both record levels.
The DOE/EIA weekly price lags the AAA daily and SONAR DTS.USA series because it is published only once per week, so it often catches up after those indicators have already moved. ULSD settled at $5.0575/g on Thursday, only the second time in history the contract has closed above the $5/g threshold, the first having occurred on April 28, 2022. Earlier in the week, ULSD traded as high as $5.19/g before a late‑day selloff left the settlement at $4.9615/g, up just over 0.2% for the day. A power outage forced a shutdown at ExxonMobil’s 264,000‑barrel‑per‑day Joliet, Illinois refinery, cutting output while repairs proceed and the restart timeline remains uncertain. Meanwhile, Houthi attacks disabled the Saudi East‑West pipeline, removing up to 7 million barrels per day of crude from Red Sea exports and adding to supply concerns. The shutdown at Joliet follows a pattern of refinery outages that have tightened diesel supplies amid strong demand. Chevron CEO Mike Wirth warned that risks remain to the upside over the next few months, saying it is hard to envision a quick softening of prices. Market analysts note that while diesel has led the rally, crude prices are beginning to catch up, reducing the previous lag.
“It’s harder to envision a scenario where prices soften quickly,” Mike Wirth, CEO of Chevron said.
Beginning with the first price in July of $4.578/g, the DOE/EIA number is now up $1.707/cts/g. Prior to Thursday, ULSD had only settled above $5/g once, 4/28/2022, a day that was a complete aberration less than two months after the Russian invasion of Ukraine when numerous traders were caught short and needed to cover their position.
What we know
The Department of Energy/Energy Information Administration average weekly retail diesel price rose 31.8 cents/gallon to $6.285/g, effective Monday but announced Tuesday, the highest price in its history.
That record was broken last week, with the price then setting a new all-time high Tuesday at $6.2694/g.
The DTS.USA price Tuesday was $6.26, also an all-time high.
ULSD settled Thursday at $5.0575/gallon, only the second time in its history it settled above the $5 mark.
The earlier higher prices were given another upward kick Monday on news that there has been a shutdown after a power outage at the 264,000 barrel/da Joliet, Illinois refinery of ExxonMobil (NYSE: XOM).