Diesel futures and retail prices power higher, outstripping gains in crude

Core Insights - The ongoing conflict in the Middle East is driving diesel prices up in the futures market, with retail prices also showing significant increases [1][3]. Price Movements - The Department of Energy/Energy Information Administration reported an average retail diesel price increase of 8.8 cents per gallon, reaching $3.897 per gallon, the highest since July 8, 2024 [1]. - Diesel prices have risen for seven consecutive weeks, accumulating a total increase of 43.8 cents per gallon [2]. - The price of ultra low sulfur diesel (ULSD) on the CME commodity exchange rose to $2.9004 per gallon, marking a gain of 30.44 cents from the previous Friday's settlement [4]. Recent Trading Activity - On Tuesday, ULSD settled at $3.1869 per gallon, up 28.65 cents, reflecting a 9.88% increase, with a daily high of $3.3692 [5]. - Since February 2, when ULSD was priced at just under $2.36 per gallon, the price has increased by 82.71 cents [5]. Retail Price Trends - The AAA national average price for diesel rose from $3.758 per gallon to $3.891 per gallon, reflecting the price changes from Monday [6]. - The current average national price of diesel is reported at $3.863 per gallon, the highest since May 25, 2024, with expectations to approach $4 per gallon [8]. Market Influences - The surge in diesel prices is attributed to various energy-related factors linked to the Middle East conflict, particularly concerns over potential shipping restrictions in the Strait of Hormuz, a critical passage for 20% of the world's oil supply [8].