Benchmark diesel price down for third week in a row

The average price of the standard retail diesel fell on Monday for the third week in a row, as it decreased in the future markets that prevailed from the end of July to August.

The average weekly retail price of the Ministry of Energy/Energy, which is the basis for most additional fuel fees, 4.6 cents/gallons to $ 3.754/g. The price was deployed on Tuesday and Monday as of the two.

Besides being the third weekly decline in a row, it was also the largest one -week segment since the end of June. The first two of these three were small declines, and the decrease during the three weeks was only 5.8 CTS/G.

The future price of the ULSD on the CME Exchange for commodities was in a relatively narrow range last week after a previous decrease in late July and going to the first days of August. After a highly high settlement slightly more than $ 2.50/g on July 21, the price decreased gradually, as a low settlement recorded recently of $ 2.2502/g at August 5. The settlement of the two was slightly higher at $ 2.291/g.

Most of the comments have focused on the reason for the indirect nature retreat, out of a possible agreement between Russia and Ukraine, which would end the war between the two countries.

Other factors gradually include the dollar’s strengthening in the wake of nearly six months of decline. Oil prices tend to move in the reverse direction of the dollar. The recent increases are said to be working in the declining trend of oil in the past two weeks.

One thing that did not happen is a flood of oil that comes out of the OPEC+ group, despite the monthly relaxation of production cuts that have been in effect since the spring of 2023.

In its last monthly report, the S& P Global Community Insights said that the production of Opec+ in July, after a significant increase in June, decreased by 140,000 barrels/day in July, against a decrease of 190,000 barrels/D from countries that make up part of OPEC.

The increase in OPEC+ shares has been in effect for several months in the range of more than 400,000 barrels/d to 500,000 barrels/d. But raising the shares and raising production was different operations, and as the Spgci report appears, one of them does not necessarily follow the other.

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