DOE Diesel Eases 5.3 Cents to $5.599, Brent Crude Off 7%

The EIA weekly on-highway diesel survey came in at $5.599/gal for the week of Aug. 31, down 5.3 cents from the prior week. At the stated 6.5 mpg reference, that is 86.1 cents a mile, and the week's drop trims about $4.08 from the fuel cost of a 500-mile haul at the stated 6.5 mpg reference. The index sits 50% above its five-year median entering fall harvest season.

Notable moves from EIA's Monday on-highway diesel survey and daily spot series:

• Gulf Coast (PADD 3) led retail declines, down 2% week over week from the prior Monday's EIA on-highway diesel survey to $5.360/gal. It remains 59% above its five-year median.
• California moved against the broader softening, up 3% week over week to $7.218/gal, 47% above its five-year median.
• West-Gulf spread: the West Coast (PADD 5) at $6.497/gal pays 113.7 cents/gal over the Gulf Coast (PADD 3) at $5.360/gal.
• Midwest (PADD 2) edged down 1% week over week to $5.571/gal, 50% above its five-year median.
• Brent crude (Europe spot) led all series in weekly change, off 7.4% to $88.24/bbl as of Aug. 25 per EIA's daily spot series, with WTI (Cushing spot) at $83.90/bbl the same date. Brent sits 10% above its five-year median. Crude is roughly half the cost of a gallon of diesel, and a move of this size reaches the pump with a lag of days to weeks.

Wholesale layer: New York Harbor ULSD spot closed at $4.186/gal and Gulf Coast ULSD at $4.216/gal as of Aug. 25, per EIA's daily spot series. These are bulk untaxed wholesale prices. At $5.599, the DOE retail average carries taxes and the full hub-to-pump layer on top.