On a day when the broader oil markets fell, the Department of Energy / Energy Information Administration’s weekly average retail benchmark diesel price soared for a 12th straight week.

That price rose 0.6 cents to $ 3.344 per gallon. This is the highest level since December 15, 2014. In addition to marking the 12th consecutive increase, it is also the 13th week that the price has not fallen. The week before the start of the current streak, the price was unchanged.

Whether the price could rise for the 13th consecutive time next week has become questionable, at least for now, following a huge drop in commodity oil prices on Monday. The price of ultra-low sulfur diesel fell 12.81 cents per gallon to $ 1.9852 per gallon, a decrease of 6.06%. This is the first settlement below $ 2 since May 21, and the percentage drop is the largest in several cases of such large – and larger – percentage drops as the pandemic set in between February and April 2020.

What is not clear is how much the price of ULSD and other oil benchmarks would have fallen had it not been for a large sell-off fueled by a delta variant in virtually all financial assets. Monday.

Oil markets started the day down following news that the OPEC + group had reached an agreement to increase production from August. The group’s failure several weeks earlier to approve this increase in production had given the markets an element of uncertainty which ultimately turned out not to be predominantly bearish or bullish; the global benchmark Brent crude had traded in a relatively narrow range of $ 73 to $ 77 since the failure of the US Independence Day weekend meeting.

Brent and other benchmarks fell on Monday to levels not seen in months. Brent came in at $ 68.62 a barrel, down 6.75% from the first settlement below $ 70 since the last trading day in May. The national benchmark, West Texas Intermediate, fell 7.52% to $ 66.42 per barrel. This is the first settlement below $ 70 since June 9.

While all models show the world needs the crude that OPEC + has agreed to bring to market, the continued spread of the delta variant could mean that optimistic forecasts for growth in global oil production may not come to fruition. realize, resulting in weakening demand and all expected supply is not required. This is a factor that drove the markets lower on Monday.

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