Diesel markets remain tight, and ULSD prices are holding firm across key hubs.
From our company archive. Market commentary reflects its original publication date.
Diesel markets remain tight, and ULSD prices are holding firm across key hubs. In the U.S. Gulf Coast, spot prices have climbed to around $2.27/gal, up from $2.23 the previous session and nearly 13% higher than this time last year. Similar strength is showing in New York Harbor, where futures have rallied close to 3% in recent days.
Behind the numbers, the story is consistent: global diesel stocks are running below five-year averages, with U.S. and European inventories both under pressure. Refinery maintenance, limited heavy crude supply, and fewer high-diesel-yield feedstocks are squeezing
output at a time when demand has not eased. Transport, industrial, and even seasonal power needs continue to pull hard on the system.
This tight balance has translated into strong refinery margins, with ULSD commanding a healthy premium over crude in most markets. OPEC+ output signals and broader macroeconomic data are now the factors to watch, alongside weekly inventory reports. Any further supply disruptions or refinery outages could accelerate the upward move, while softer economic data may be the only real brake on demand.
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