Retail diesel prices fell for the 12th time in 13 weeks, while crack spreads surged to 70-75% of crude barrel value, signaling deep market divergence.
The average weekly retail diesel price declined 9 cents to $4.578 per gallon, marking its 12th drop in 13 weeks, according to government data. The decline would have been consecutive without a brief rebound in early May, reflecting persistent downward pressure on fuel costs.
Crack spreads, a key measure of refining profitability, have surged to 70-75% of a crude barrel’s value, up from 45% at the start of June and 27% at the beginning of the year. The 3:2:1 crack spread, which compares three barrels of crude to two barrels of gasoline and one of diesel, highlights the widening gap between crude and refined product prices.
Retail diesel prices showed volatility, with AAA reporting a slight increase to $4.765 per gallon, while SONAR’s DTS.USA data series recorded $4.81 per gallon. The disparity underscores the fragmented state of the oil market amid shifting supply and demand dynamics.