US diesel below $6 a gallon at 2-month low on easing tensions, weaker demand
USO•The US national average diesel price fell to $5.998 a gallon on Saturday, below $6 for the first time in two months. Seasonal demand weakness and falling crude prices have eased pressure on fuel markets.
1. Diesel prices retreat
The national average retail diesel price was $5.998 a gallon on Saturday, according to GasBuddy, after topping $6 on September 10 and reaching a record $6.519 on September 22. Prices had risen as the war against Iran disrupted oil supplies and attacks on Russian refineries stymied production.
2. Seasonal factors weigh
Seasonal demand weakness and an 18.5% drop in Brent crude futures over the past two weeks are helping bring diesel prices down. Demand typically softens in autumn as people drive less, hurricane season winds down and the risk of Gulf Coast refinery disruptions declines, GasBuddy petroleum analysis head Patrick De Haan said. Refinery maintenance is also largely completed by November, allowing production rates to recover.
3. Other fuel costs ease
California diesel prices briefly exceeded $10 a gallon. GasBuddy data also showed gasoline falling below $4 a gallon this month for the first time since August 10.
