Diesel Bypasses Gasoline to Emerge as Summer’s Hot Fuel Trade

Diesel fuel tanks in Floyds Knobs, Indiana.
Photographer: Luke Sharrett/Bloomberg

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By Mia Gindis and Nathan Risser

July 21, 2025 at 6:00 AM EDT

Updated on

July 21, 2025 at 12:13 PM EDT

In the middle of the US summer driving season, diesel is knocking gasoline off its perch as the hot fuel bet and has become one bright spot in an oil market bracing for a glut this year.

US diesel stockpiles are sitting at the lowest levels since 1996 for this time of year, turning money managers the most seasonally bullish on the fuel since 2018.