Despite conflicts in the Middle East and navigation diversions in the Red Sea, oil prices remain unaffected
The average diesel price has decreased for the fifth consecutive week. According to the Energy Information Administration (EIA), this week’s average retail diesel price dropped by 4.6 cents, reaching $3.848 per gallon. Over the past five declines, the gallon price has fallen a total of 21.3 cents, reaching a level not seen since late January.
Average diesel prices by region in the United States during the week of May 13 are as follows:
- East Coast – $3.916
- Midwest – $3.768
- Gulf Coast – $3.559
- Rocky Mountains – $3.791
- West Coast – $4.551
- California – $5.123
- Central Atlantic – $4.155
- Lower Atlantic – $3.794
Renewable diesel and market dynamics
Despite conflicts in the Middle East and navigation diversions in the Red Sea, oil prices remain unaffected. However, market weakness is reflected in petroleum products, especially diesel, which is garnering increasing attention.
Diesel has become a primary reason behind the gradual decline in oil markets since mid-April. Recent weakness in oil is largely attributed to the diesel market, with a growing role for renewable diesel produced from non-petroleum feedstocks. Economist Philip Verleger notes that EIA data show U.S. distillate consumption down by 400,000 to 600,000 barrels per day compared to pre-pandemic levels, though this decline does not reflect renewable diesel consumption, as reported by FreightWaves.
Regulations from the U.S. Environmental Protection Agency have led refineries to produce more renewable diesel, reducing petroleum consumption in the country, according to Verleger. However, these trends have not been reflected in global oil demand forecasts.
In recent analyst meetings, refinery executives have highlighted the importance of renewable diesel in their operations, citing operational experience and market knowledge gained. Though the diesel crack spread has decreased over the past two months, some executives, like Valero’s Gary Simmons, argue that demand remains solid, albeit expected to be flat or slightly lower than last year, with signs of potential improvement.
Phillips 66’s Brian Mandell notes that attacks in Ukraine have affected Russia’s refining capacity, but diesel prices have been affected by warm weather in the U.S. Northeast and the end of refinery maintenance season. Product market weakness compared to crude is evident, with the Brent 3-2-1 crack spread falling to around $21 per barrel from $29 two months ago, according to CME prices.
Unusual roadside attractions of the U.S.
In addition to the stunning views and landscapes, U.S. highways hide authentic treasures that many are unaware of. The highways of the United States stretch
Clearinghouse-II: CDL license revocation and reinstatement to service
This new phase will allow the sanctioning of drivers who continue to operate vehicles after having received alcohol or drug violations. The Federal Motor Carrier
How regulations drive truck accident insurance claims
Violations of transportation regulations are a crucial factor in determining responsibility for accidents. The Federal Motor Carrier Safety Administration (FMCSA) is responsible for overseeing the
Road transport between uncertainty and signs of recovery
Over the past two years, the market has experienced a constant decline in rates, which finally came to a halt in 2024. The road transport
Trump’s presidency: major shift in U.S. energy and environmental policies
Trump’s victory promises to radically transform the country’s energy and environmental policy. The victory of Donald Trump as President of the United States was announced
U.S. fuel prices continue gradual decline as election results approach
The EIA has reported that gasoline and diesel prices continue a gradual downward trend. The United States is preparing for the presidential elections, and as