Diesel Prices Surge Amid Ongoing Middle East Tensions

WASHINGTON, D.C. — The diesel market is experiencing significant shifts as the weekly benchmark diesel price rose by 10 cents per gallon on June 17, reaching $3.571 per gallon. This marks the largest increase since January and the third-largest since early 2024.

Market analysts attribute the price surge to fluctuations in ultra low sulfur diesel (ULSD) prices on the commodity exchange. Prices jumped from $2.0445 per gallon on June 2 to a peak of $2.2053, before experiencing minor dips in between. The situation has been exacerbated by rising tensions due to the ongoing conflict between Iran and Israel, which has reportedly halted Iranian oil exports.

Different regions are witnessing varying price increases. For instance, Grand Prairie, Texas saw a 41-cent rise, while White Hills, Arizona experienced a 25.1-cent increase. However, not all locations followed this trend, as some areas reported no price changes, indicating a complex interplay of local market conditions.

The International Energy Agency (IEA) has also revised its forecast for global oil demand growth in 2025, reducing it from 740,000 barrels per day to 720,000 barrels per day. This downward adjustment aligns with a broader trend of slowing demand growth, contrasting sharply with the recent surge in oil prices.

This data comes from the IndexBox platform, which offers reports and analyses on the petroleum market. Their insights are particularly relevant for businesses involved in the oil industry as they navigate these fluctuating market conditions.