The Department of Energy and Energy Information Administration average weekly retail diesel price fell 6 cents to $6.292 a gallon, effective Monday and published Tuesday. FreightWaves reported that the benchmark used for most fuel surcharges would not yet reflect Monday's drop in futures markets.

The December ultra low sulfur diesel contract became the front month Monday and settled at $4.4216 a gallon, the lowest settlement since October 6, when the contract settled at $4.4231. The change between Friday's October contract and Monday's December contract was a decline of 36.89 cents a gallon. Comparing the December contract across the two days, the decline was 25.45 cents a gallon. Brent crude fell 10.94% on Monday and West Texas Intermediate fell 7.36%.

On Tuesday at about 11:30 a.m., ULSD traded up 8.94 cents, or just over 1%, at $4.5110 a gallon. FreightWaves noted that prices can reverse quickly because oil markets have moved on each round of diplomatic headlines in recent weeks.

The SONAR chart of actual diesel truck stop prices shows the national figure at $6.34 a gallon on November 3, down 1 cent. The line climbed from about $5.40 in early September to a peak above $6.50 in late September, then eased and held between roughly $6.30 and $6.40 through October.

Goldman Sachs raised its oil price forecast on supply disruption risks, according to the report. Oil analyst Rory Johnston wrote that individual diplomatic headlines rarely amount to much while the market's base case remains a negotiated outcome.

Source: FreightWaves - https://www.freightwaves.com/news/benchmark-diesel-price-is-down-so-is-futures-market-in-a-big-way