AAA Daily Fuel Gauge Report for Friday, 12/17/21

National Average Price for Regular Unleaded Current: $3.315; Month Ago: $3.805; Year Ago: $3.338. National Average Price for Diesel Current: $5.132; Month Ago: $5.357; Year Ago: $3.608.

With demand for the fuel accelerating in September after a hurricane knocked out a swath of U.S. refining and fires eliminated processing in Europe’s hub, diesel was credited with underpinning a rally in crude. Brent jumped above $60 a barrel last month and is still on an upward trajectory. But while those refinery issues are normalizing -- and diesel is weakening -- there’s been little let-up in the rally in crude futures. They reached a more than two-year high of $64.65 a barrel on Nov. 7, and remain close to that. “This will counter the recent support to crude,” Alan Gelder, vice-president of refining, chemicals and oil markets at Wood Mackenzie, said of signs the diesel market is weaker than expected. “Particularly if demand growth turns out to be disappointing” given the importance of diesel as a source of consumption during winter months. Click Read More below for additional information.

UPS announced second-quarter 2024 consolidated revenues of $21.8 billion, a 1.1% decrease from the second quarter of 2023. Consolidated operating profit was $1.9 billion, down 30.1% compared to the second quarter of 2023, and down 29.3% on an adjusted basis. Diluted earnings per share were $1.65 for the quarter; adjusted diluted earnings per share of $1.79 were 29.5% below the same period in 2023. For the second quarter of 2024, GAAP results include an after-tax charge of $120 million, or $0.14 per diluted share, comprised of a one-time payment of $94 million to settle an international regulatory matter, and transformation and other charges of $26 million. “I want to thank all UPSers for their hard work and efforts in the second quarter,” said Carol Tomé, UPS chief executive officer. “This quarter was a significant turning point for our company as we returned to volume growth in the U.S., the first time in nine quarters. As expected, our operating profit declined in the first half of 2024 from what we reported last year. Going forward we expect to return to operating profit growth.”