Diesel street margin widened 35 cents in 30 days to $1.65 a gallon

The diesel retail-wholesale spread is 1.654 now, up 0.354 over the past 30 days. That spread is the gross margin on a gallon of diesel at the street, and it is the widest it has been in 30 days. That 0.354 gain is money the street now keeps on every gallon it sells, and it was not keeping it a month ago.

The margin widened even as diesel got more expensive. ULSD futures are 4.815, up 5.4% on the month and at 79% of their 30-day range, so pump prices rose faster than the wholesale cost behind them. Refiners gained at their end too. The 3:2:1 crack spread is 64.38, up 2.39, meaning the margin on turning crude into gasoline and diesel is wider than it was a month ago. Brent crude is 104.86, up 7.1% and at 90% of its range, so the barrel feeding both those margins is not cheap. Both the refiner and the retailer are earning more per gallon right now, with the cost of oil climbing underneath them.

Natural gas is the one to watch. Henry Hub is 3.27, up 12.1% on the month and at 96% of its 30-day range, with storage at 3415, the top of its range. That is an unusual pairing, since full storage usually caps the price rather than letting it run near a monthly high. Gas priced this close to its 30-day top could keep pushing operating costs for anyone running equipment or heat off it, or it may ease if that full storage finally pulls the price back.