The national average price for a gallon of diesel fell by 6 cents, from $6.352 to $6.292, according to the U.S. Energy Information Administration. The Trucker reported that the decline is only the second weekly drop since the end of February.
Every reporting region posted a decline. The California region recorded the largest drop, from $8.155 to $8.076, a decrease of nearly 8 cents a gallon.
Oil markets moved sharply during the same period. The Associated Press reported that Brent crude fell nearly 8% Monday and then rose almost 2% to $106.50 a barrel early Tuesday. U.S. benchmark crude fell 8% at the start of the week and rose to $98.49 a barrel on Tuesday. Energy prices have been volatile because of uncertainty over when the conflict with Iran, which began at the end of February, will end.
FreightWaves reported that the EIA weekly retail price is the benchmark used for most fuel surcharges. Futures markets fell sharply Monday, with the December ultra low sulfur diesel contract settling at $4.4216 a gallon, and traded near $4.51 on Tuesday morning as prices moved on reports about negotiations.
The weekly decline arrives after the national average reached records earlier this fall, and the Trucker noted that this is the second drop recorded since the conflict began.
Source: The Trucker - https://www.thetrucker.com/trucking-news/business/diesel-prices-slip-for-a-change