Sure, let’s dive into this article a bit. Diesel prices are on the move again—kinda feels like a rollercoaster, right? So, this Monday, apparently, there was a bump in the benchmark price for fuel surcharges. I’m talking about a 2 cent increase per gallon. Now, doesn’t sound like much, but in the diesel world, that’s the equivalent of finding out your favorite band added an extra show in your town.
The Energy dudes, or the DOE/EIA as they fancily call themselves, noted that prices are creeping up. I think back around June 2, diesel was cheaper than a reunion tour ticket to your favorite band back in the day. Lowest it had been since September 2021, can you believe?
Now, let’s chat oils. Brent crude, our global oil superstar, rose and rose. I mean, from $60.94 to $65.29 in just over a week? What even is happening—like, are the oil folks having a party without us?
While all this drama unfolds, some analysts are side-eyeing the trade chatter between the U.S. and China. Maybe they’re not ready for an all-out trade brawl. Or, they are? Who knows, really.
Meanwhile, on the flipside, agencies like the International Energy Agency sound kinda meh about global oil demand. Like, they’re hoping for an increase but have the energy of a tired cat. About 1 million barrels a day, they predict, which is low. Super low.
OPEC+ are out here like “Let’s keep pumping oil, yeah?” But honestly, with demand feeling like a lazy Sunday, who’s buying all that oil?
Then there’s this fancy term, backwardation. Sounds like something you’d yell during a wild game of Scrabble, but it’s just oil jargon. Usually, future prices go up over time, reflecting storage and money value and all that. But no, not here. Apparently, the most immediate oil is the golden ticket. Got tight inventories? You bet.
Something shifted in the ULSD market too—a narrowing backwardation, they say. Prices were like, 5.5 cents apart, and now they’re just 1.75. July versus August, people really are keeping score here.
Brent’s playing its own game, spreading between first month and six months out. Wild swings from $2.85 down to 22 cents—how’s one to keep up?
So, in a nutshell—oh, did I say nutshell? More like a nut-tree—oil’s a tad chaotic but is there anyone who truly gets it? Maybe, but I sure don’t. But hey, isn’t that the charm of it all?
