Retail diesel prices increased for a second week as the market continued to show signs of tightening.

On-highway diesel rose 3.5 cents this week to an average of $3.753 per gallon, reaching the highest price in over a month, according to data from the Energy Information Administration. Prices were also 21.7 cents higher than the same week last year. 

Notably, diesel prices have been rising without the help of crude oil. The diesel crack spread, which shows the relationship between diesel and crude oil prices, is trading at the highest since February 2024. Additionally, diesel forward curves have been signaling market tightness. 

The EIA’s latest petroleum report on Wednesday showed that U.S. distillate inventories fell for a sixth consecutive week and held below year-ago levels. Much of that has been due to lower diesel imports. 

Inbound shipments have been trending lower heading into the fourth quarter, when they typically experience a seasonal increase. Meanwhile, exports and domestic demand have been relatively stable, while production trends lower. 

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