Diesel Benchmark Hits Record $6.529/Gallon as Futures Retreat on Hormuz Flows

The U.S. benchmark diesel price rose 24.4 cents to a record $6.529 per gallon on Sept. 21, the ninth increase in 11 weeks, the Department of Energy reported Sept. 22. The price is up $1.951 since July 6. Ultra low sulfur diesel futures on the CME have reversed sharply, falling from a record $5.262 settlement on Sept. 15 to $4.8895 on Sept. 21, with prices down another 9.56 cents to $4.7939 in early Sept. 22 trading. The decline follows reports of progress on Saudi Arabia's east-west crude pipeline to the Red Sea port of Yanbu, easing pressure on Strait of Hormuz flows, and speculation that President Trump could meet his Iranian counterpart at the UN General Assembly in New York this week. J.P. Morgan's commodities research team said it lacks a baseline view for the first time since the Iran conflict began, citing crossed "red lines." Louisiana Gov. Jeff Landry has floated a diesel export ban, which Dallas Fed energy expert Garrett Golding warned would tighten global balances and raise prices in import-dependent regions.