U.S. retail diesel prices rose for the fourth consecutive week, reaching $5.348/gallon, while diesel futures plummeted due to the potential reopening of the Strait of Hormuz.
Data released by the U.S. Energy Information Administration (EIA) shows that as of Monday (August 3), the average U.S. retail diesel price rose by 3.5 cents/gallon to $5.348/gallon, marking the fourth consecutive week of increases, with a cumulative rise of 77 cents/gallon during this period. Meanwhile, influenced by news of the imminent reopening of the Strait of Hormuz, diesel futures market prices fell rapidly. The price of the ultra-low sulfur diesel (ULSD) contract on the CME commodity exchange fell by 3.68%, 2.09%, and 5.93% respectively over the three trading days ending Monday, with Monday's settlement price of $3.8772/gallon being the lowest since July 13. As of Tuesday (August 4) at 9:40 AM, ULSD futures further declined by 4.34% to $3.7091/gallon, which, if it holds until closing, would mark a new low since July 10.
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