Last weeks ULSD Market Snapshot:
From our company archive. Market commentary reflects its original publication date.
Last weeks ULSD Market Snapshot:
Strongest surge since February
ULSD futures jumped roughly 8% on June 13, marking the steepest single-day gain since February. Escalating tensions between Israel and Iran, which raised fears of disruptions in Middle East crude exports—particularly sour grades crucial for diesel/distillate production
Tight U.S. inventory intensifies rally
U.S. ULSD stocks are running at about 108.9 million barrels, nearly 15% below the five-year average. This tight supply, combined with rising crude prices, is expected to push retail diesel prices higher by 10–30¢/gal over the next two weeks.
Regional price trends
Gulf Coast Spot: Averaging $2.085/gal (June 9), up ~1% from the previous day and ~–8.7% year‑on‑year.
Retail in the U.S.: Around $3.471/gal (June 9), slightly up from $3.451 the prior week .
West Coast (LA): Spot prices at $2.189/gal, down from $2.433 a year ago.
What’s fueling the sharp changes?
Geopolitical risk: Middle East conflict roils crude flows through the Strait of Hormuz—diesel chemistry hit hardest
Low inventories: U.S. ULSD stocks remain historically low, tightening the balance sheet
Crude oil gains: Diesel futures are following oil higher amid broader supply concerns
What to expect next
Continued volatility—supply fears could persist if Middle East tensions escalate.
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