For 7th straight week, benchmark diesel price is higher

Core Insights - The retail price of ultra low sulfur diesel (ULSD) has increased significantly, rising 9.8 cents per gallon to $3.809, marking the seventh consecutive increase and a total rise of 35 cents per gallon during this period [1][2] Price Movements - The current retail price is the highest since it reached $3.831 per gallon on November 24 [2] - ULSD prices on the CME commodity exchange have surged recently, with a notable increase from $2.3598 per gallon on February 2 to $2.6869 per gallon a week later [3] Market Dynamics - The increase in diesel prices is attributed to various factors, including the buildup of U.S. military assets around Iran and the impact of sanctions on Russian and Iranian oil exports [4] - Diesel prices are rising at a faster rate than crude oil prices, with ULSD increasing by 12.3% since February 17, compared to a 5.2% rise in WTI crude [5] Supply and Demand Considerations - Despite expectations of pressure on oil prices due to growing supply and mild demand, the current situation indicates a potential for price collapse if geopolitical tensions resolve and oil from Iran and Russia floods the market [6]