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Diesel prices are down 3.8 cents, says Energy Information Administration


July 06, 2011

It appears that diesel prices are back on a steady downward pattern, according to data released by the Department of Energy’s Energy Information Administration (EIA).

Prices dipped 3.8 cents to $3.85 per gallon, following a 6.2 cent decline last week, which represented the steepest weekly decline since falling 6.4 cents the week of May 23. Diesel prices have gone down a cumulative 27.4 cents since hitting a 2011 high of $4.124 per gallon the week of May 2.

On a year-over-year basis, prices are up 96.2 cents.

Oil prices are also down, with the current price per barrel trading at $96.09 on the New York Mercantile Exchange, according to media reports. A Boston Globe article stated that Goldman Sachs said that the International Energy Agency’s recent decision to release 60 million barrels of oil from its reserves won’t cool off prices as much as originally thought.

The article added that independent oil analysts say prices still could head lower this year, but some think IEA’s announcement speaks volumes about its expectations for world oil supplies.

As LM has reported, even with the recent decline of diesel prices, shippers and carriers remain concerned about the price of diesel and oil. While many have indicated that prices at current levels are still digestible, they cautioned that could quickly change depending on how quickly prices rise with summer driving season officially here.

And even with declines in prices in recent weeks, the focus from a supply chain perspective for managing fuel price ebbs and flows—for shippers—is more on utilization and efficiency by doing things like driving empty miles out of transportation networks.

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Carload volumes were up 2.8 percent at 304,276, and intermodal volume for the week ending August 16 was up 5.4 percent at 270,316 containers and trailers.

Even though this data can be viewed as “old” in the sense that there is not a whole lot new to report about the port labor talks, it does a good job of looking into the mindset of shippers as talks continue.

Company officials said this service will be provided without any type of additional cost for customer shipments traveling from Ohio, Michigan, and Indiana, with expedited services available to customers outside of this area.

FTR says both spot rates and contract rates are heading up in a full capacity environment and with the fall shipping season rapidly approaching, it explained conditions for shippers could further deteriorate.

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Article Topics

News · Trucking · Transportation · EIA · Diesel Prices · Oil · Oil Prices · All topics

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