Latest DOE/EIA diesel benchmark price increase adds almost 25 cts

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effective Monday but published Tuesday, to $5.643/g. During those 12 weeks, which started to see increases in anticipation of the Iran war before the shooting actually began in late February, the DOE/EIA price has added $2.184/gThe latest price is the highest since July 4, 2022, when it was $5.675/g. That was during a long string of prices more than $5/g during the post-pandemic surge in inflation. The high price during that time was $5.81/g on June 20.Absent a stunning turnaround in oil markets in the next few days, it is likely that the 12-week run of increases will stretch to at least 13 weeks. There are essentially no signs of weakening coming from the futures market for ultra low sulfur diesel (ULSD) on the CME commodity exchange, and the numbers in physical markets from around the world for crude or products to be delivered in a shorter time span are sending out even stronger signals for higher prices.Futures market up again TuesdayULSD at approximately 10 a.m. EDT Tuesday morning was trading at $4.4141, up 8.57 cts/ from Monday’s close, an increase of 1.98%. It has been as high as $4.5841/g Tuesday.ULSD settled April 1 at $4.0568/g.  It soared more than 30 cts/g the next day, did not trade Friday due to Good Friday, and fell slightly Monday. But even that Monday settlement of $4.3284/g was still well above the April 1 settlement, and was higher than the strong closing numbers for the April contract in the final day of trading in March.But the futures market is only one indicator of what is happening to diesel markets. Oil is in an enormous structure known as backwardation, where the nearest delivery dates for crude or products carry the highest prices. The steepness of the backwardation is near historic levels.ULSD on CME is trading May barrels for delivery into New York harbor. Those dates could be in early May; they could be in late May. The backwardation means the futures price will be lower than what is going on in the physical market for oil to be delivered in a short-term window.Physical markets are running higher than futuresMike Wirth, the CEO of Chevron, was quoted as saying at the recent CERAWeek conference in Houston that the futures market was not reflecting everything going on in that more short-term physical world. “There are very real, physical manifestations of the closure of the Strait of Hormuz that are working their way around the world and through the system that I don’t think are fully priced into the futures curves on oil,” Wirth said.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersPLTR Palantir Technologies Inc. 140.76 -9.31 (-6.20%)APLD Applied Digital Corporation 27.79 +2.61 (+10.37%)BTC-USD Bitcoin USD 71,546.68 +1,634.92 (+2.34%)F Ford Motor Company 12.18 +0.66 (+5.73%)GOOG Alphabet Inc. 314.74 +10.81 (+3.56%)PortfolioSign in to access your portfolioSign inTop gainersAXTI AXT, Inc. 53.18 +7.72 (+16.98%)HUT Hut 8 Corp. 61.43 +8.77 (+16.65%)USAR USA Rare Earth, Inc. 16.78 +2.14 (+14.62%)RIOT Riot Platforms, Inc. 16.11 +1.92 (+13.53%)VSEC VSE Corporation 210.90 +25.01 (+13.45%)Top losersAPA APA Corporation 38.75 -4.21 (-9.80%)VG Venture Global, Inc. 14.44 -1.55 (-9.69%)YARIY Yara International ASA 28.29 -2.66 (-8.59%)MUR Murphy Oil Corporation 39.10 -3.64 (-8.52%)SSL Sasol Limited 12.46 -1.14 (-8.38%)Most activeINTC Intel Corporation 58.95 +6.04 (+11.42%)NVDA NVIDIA Corporation 182.08 +3.98 (+2.23%)HOLX Hologic, Inc. 76.01 0.00 (0.00%)NOK Nokia Oyj 9.44 +0.59 (+6.67%)AAL American Airlines Group Inc. 11.41 +0.60 (+5.55%)Top economic eventsEarnings eventsMy earnings eventsEarnings events