US diesel prices hit record $6.20/gallon, up 78% in nine months

US diesel prices have surged to a record $6.20 per gallon, marking a 78% increase over the past nine months, as reported by @KobeissiLetter. In California, prices have exceeded $8.14 per gallon, driven by a combination of low supply and high demand. This rise in diesel prices surpasses the previous high recorded in 2022, indicating significant pressure on freight, shipping, and logistics sectors due to increased fuel costs. The current diesel price levels reflect broader market dynamics and may influence expectations around crude oil prices reaching new highs. Key Takeaways The diesel price increase suggests a tightening oil market, potentially impacting crude oil price expectations. The market pricing for crude oil to reach a new all-time high by September 30 remains low at 1.8% YES. The December 31 crude oil market shows a higher 14% YES, suggesting participants may view longer-term factors as supportive of higher oil prices. What to Watch Observers should monitor actions and statements from key figures such as OPEC’s Mohammad Sanusi Barkindo and Saudi Energy Minister Abdulaziz bin Salman Al Saud, as their decisions could influence crude oil supply dynamics. Upcoming geopolitical...