After some stability in the futures market for ultra low sulfur diesel (ULSD) signaled retail prices might stop rising, a renewed surge has led to a big move in the weekly benchmark price published Tuesday. The Department of Energy/Energy Information Administration average weekly retail diesel price rose 9.8 cents/gallon Monday, published a day later, to $3.809/g. It’s the seventh consecutive increase, a period during which the price used for most fuel surcharges has increased 35 cts/g. It’s the highest ...

Core Insights - The geopolitical event of a military capturing a leader in an OPEC country, specifically Venezuela, did not significantly impact oil markets, indicating a shift in market dynamics over the decades [1]. Oil Price Movements - The benchmark diesel price declined by 2.3 cents per gallon to $3.477/g, marking the sixth consecutive week of price decreases [2]. - The total decline in the average weekly retail diesel price over six weeks reached 39.1 cents per gallon, with the smallest decline recorded in the latest week [3]. - Ultra low sulfur diesel (ULSD) prices have fluctuated, with a recent high of $2.7011/g on November 18 and a low of $2.107/g on December 26 [4]. Market Reactions - Following the capture of Maduro, ULSD prices rose slightly, but the overall market reaction was muted compared to historical precedents, with ULSD increasing by 1.31% and Brent crude by 1.66% [5]. - As of Tuesday, ULSD was down 1.54% to $210.97/g, indicating a cancellation of the minor upward bounce from the previous trading day [6]. Supply and Demand Dynamics - Analysts attribute the muted market reaction to a projected supply/demand imbalance, with supply expected to exceed demand significantly [7]. - Despite indications of a potential glut, Brent crude prices have remained relatively stable, settling higher than recent lows [8]. - Venezuela's oil production has decreased to approximately 963,600 barrels per day in December, down from 1.1 million barrels per day in November, due to ongoing sanctions [9].