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Diesel prices are shaped by crude oil, margins, costs and crack spreads
The EIA says tight global supplies of distillate fuel oil and elevated crude prices have helped lift diesel prices in recent months.
The U.S. Energy Information Administration explains that the price of distillate fuel oil, which is often sold as diesel, depends on several moving parts, including crude oil prices, retail margins, distribution costs, taxes, and crack spreads.
The EIA adds that crack spreads, its indicator for refining margins, help connect crude costs to what refiners can earn when producing diesel from crude.
The agency also points to recent market conditions, saying tight global supplies of distillate fuel oil and higher crude oil prices have pushed diesel prices higher in recent months.
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