Benchmark U.S. retail diesel prices climbed to $5.348/gallon as futures fell to a three-week low on Hormuz reopening hopes.
U.S. retail diesel prices increased for the fourth straight week, rising 3.5 cents to $5.348 per gallon, despite a sharp decline in futures markets. The benchmark has surged 77 cents over the past month, contrasting with a 10.7% drop in CME ultra low sulfur diesel (ULSD) futures since July 23.
Futures prices fell amid optimism over a potential reopening of the Strait of Hormuz, with ULSD settling at $3.8772 per gallon on Monday, the lowest since July 13. The contract had swung wildly, dropping 5.93% on Monday alone after a 5.28% gain the prior session.
The divergence between retail and futures prices highlights persistent supply chain disruptions, even as geopolitical tensions ease. Market participants remain cautious as volatility continues in energy markets.