The U.S. Energy Information Administration (EIA) raised its 2027 U.S. diesel price forecast by 8.2% to $4.40/gallon, citing tightening global supply leading to inventory declines.
The EIA, in its September Short-Term Energy Outlook report, stated that it has raised its 2027 retail diesel price forecast from $4.07 per gallon to $4.40. Concurrently, the 2026 retail diesel price forecast was also increased by 4.4% to $5.07 per gallon (previously $4.85). The agency noted that due to supply losses from the Middle East, Russia, and China, as well as increased U.S. net exports of distillate fuel, U.S. distillate fuel inventories are expected to fall below 100 million barrels for the first time since 2003.
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