From the Gasoline and Diesel update, plus EIA:
Note that diesel was only slightly below prior peak, despite the fact that Brent was lower than it was in March or June.
Front month futures for Brent (NYMEX) is $92.38 as of 3:23PM CT. I don’t see a reason for Brent to go down on a sustained basis, so o particular reason for a drop in diesel.
Diesel and heating oil prices tend to move together, and certainly have done so during the Iran war. Households in the northeast, where heating oil use is common, are probably starting to buy oil for the heating season. Some of them are in for a very hard time.
The demand for diesel should slacken as the centibillionaires finish filling the underground tank farms for their survival bunker complexes.
The only good thing I have to say about Trump’s efforts to prop up petroleum demand is that it could mean that we no longer rely on lithium batteries with liquid electrolytes when US EV sales ramp up to a million-plus per quarter.