U.S. diesel averages $6.29 per gallon, public firms lead output, U.S. first in 2024 jet fuel use

Diesel prices and their components

The EIA states that the price of distillate fuel oil, often sold as diesel, is driven by the price of crude oil, retail margins, distribution costs, taxes, and crack spreads, the indicator we use for refining margins.^[1] According to the agency, tight global supplies of distillate fuel oil and elevated crude oil prices have driven prices higher in recent months.^[1]

The EIA defines crack spreads as indicators of the profitability of refining crude oil into petroleum products such as gasoline and diesel and are used as a proxy for refinery margins.^[1] It explains its method: We calculate the diesel crack spread by subtracting the spot market price of a gallon of crude oil from the wholesale price of a gallon of diesel.^[1] The agency reports that the high crack spread for diesel on top of the elevated price of a barrel of crude oil has driven retail prices up.^[1]

The retail average of $6.29 per gallon was reported in the EIA's weekly Gasoline and Diesel Fuel Update.^[1] The EIA states that on an inflation-adjusted basis, this is the highest price since 2022, and the number is the highest on record in nominal price terms since EIA started publishing this series in 1994.^[1] The agency notes that high diesel prices can contribute to higher on-road and rail freight costs for all goods.^[1] It adds that the fuel also has significant seasonal uses in agriculture and home heating in the northeastern United States.^[1]

Global supply, U.S. refining and inventories

The EIA reports that global distillate fuel (including diesel) supplies are tight because of reduced global refining activity in Russia, China, and the Middle East.^[1] According to the agency, reduced distillate production abroad has caused international prices to increase, driving up both the cost to import diesel to the United States and increasing demand for diesel exports from the United States.^[1]

On domestic supply, U.S. distillate production between January and August of this year averaged 5.1 million barrels per day (b/d), the most since 2019.^[1] Refineries in the United States are also running at near-maximum levels with utilization of 97% the week ending September 11, according to our Weekly Petroleum Status Report.^[1]

The EIA states that because of import and export dynamics, distillate net exports from the United States have remained near or above the previous five-year (2021–2025) high since February.^[1] As U.S. net exports increased, particularly during March and April, U.S. distillate inventories declined.^[1] The agency notes that although distillate inventories typically build in the summer months, inventories have remained relatively flat this year.^[1] In the week ending September 11, U.S. distillate inventories were 15.8 million barrels, or 13%, below the five-year (2021–2025) seasonal average.^[1] The EIA reports that low distillate inventories have driven refining margins up.^[1]

The EIA's outlook is attributed to its September Short-Term Energy Outlook: In our September Short-Term Energy Outlook (STEO), we assume that global production of distillate fuel will remain below last year's levels in the coming months, contributing to sustained high net exports, inventories remaining low, and prices remaining elevated.^[1]

Public and private shares of U.S. oil and natural gas production

A separate EIA article reports that in 2025, publicly traded companies accounted for just 2% of about 12,000 oil and natural gas producers but produced 68% of the crude oil and natural gas in the Lower 48 states.^[2] The EIA attributes this position to several factors: massive scale, prime drilling locations, and advanced technologies help publicly traded oil and gas producers maintain their edge on production.^[2] Publicly traded companies generally report lower breakeven prices—the minimum price needed to cover operating costs—than privately held companies.^[2] These lower breakeven prices are driven in part by higher-quality acreage holdings that yield higher volumes of oil and gas.^[2]

On the distribution of wells, the EIA states that the 12 firms with the most wells make up less than 1% of the companies, but they each operate from 10,000 to over 50,000 wells, producing an average of 39,000 barrels of oil equivalent per day per well.^[2] In contrast, 64% of all operators have 10 or fewer wells, which are nearly all stripper wells, producing less than 15 barrels of oil equivalent per day.^[2]

By region, of the five major producing regions in the Lower 48 states, the public company share of production is the highest in the Appalachia and Permian regions.^[2] In the Appalachia region, located in the Northeast United States, public companies produce nearly five times as much oil and natural gas as private companies, despite accounting for only 1% of the active operators in these regions.^[2] Similarly, in the Permian region, located in New Mexico and Texas, public companies represent only 3% of active operators in the region, yet collectively produce four times as much as private companies.^[2]

The Haynesville region, which straddles Texas and Louisiana^[2], is the only major U.S. producing region where private companies account for the majority (55%) of oil and natural gas production.^[2] There, the top five private natural gas operators alone produced 38%, or 5.8 billion cubic feet per day, of the region's natural gas output.^[2] The top five private crude oil producers accounted for 30% of the region's crude oil production (10,000 barrels per day).^[2]

Jet fuel consumption by country, 2024

EIA International Energy Statistics compiled by Eurabelt Fuels Global Statistics record a world total: 6,947 thousand barrels per day^[3] of jet fuel consumption for the reference period: 2024^[3], with 216 countries reported figures for 2024.^[3] In 2024, United States ranked first with 1,690 thousand barrels per day, followed by China (753.9) and United Kingdom (263.2).^[3] Together the top three accounted for 38.97% of the world total.^[3]

The United States recorded 1,690 thousand barrels per day; 24.33%; +2.23%^[3] as its value, share of world total and change on 2023. China recorded 753.9 thousand barrels per day; 10.85%; +8.87%^[3], and the United Kingdom 263.2 thousand barrels per day; 3.79%; +9.26%^[3]. Among other countries in the ranking, Germany recorded 194.4 thousand barrels per day; 2.80%; -5.02%^[3], and South Korea 153.8 thousand barrels per day; 2.21%; +12.78%^[3].

Eurabelt Publications Summary

As of Monday, September 14, U.S. retail diesel prices averaged $6.29 per gallon (gal)^[1], which the EIA describes as the highest on record in nominal price terms since EIA started publishing this series in 1994.^[1] The EIA links tight supply to reduced global refining activity in Russia, China, and the Middle East.^[1] In the week ending September 11, U.S. distillate inventories were 15.8 million barrels, or 13%, below the five-year (2021–2025) seasonal average.^[1] In 2025, publicly traded companies accounted for just 2% of about 12,000 oil and natural gas producers but produced 68% of the crude oil and natural gas in the Lower 48 states.^[2] In 2024, United States ranked first with 1,690 thousand barrels per day, followed by China (753.9) and United Kingdom (263.2).^[3]