Subscribe to our free, weekly email newsletter!


Diesel prices are down for first time in four weeks, says EIA

By Jeff Berman, Group News Editor
November 08, 2011

After three straight weeks of increases, diesel prices dipped $0.5 cent to $3.887, according to the Department of Energy’s Energy Information Administration (EIA).

Prices were up 6.7 cents, 2.4 cents, and 8 cents, respectively, the previous three weeks for a 17.1 cent cumulative gain. Prior to these increases, prices were down a cumulative 14.7 cents for the preceding five weeks.

The current price per gallon is 23.7 cents less than the high of $4.124 per gallon the week of May 2, which marks the highest level for diesel prices since August 2008, when prices were approaching $5 per gallon. The price per gallon for diesel fuel has not exceeded the $4 mark since the week of May 16, when it hit $4.061.

And the price per gallon for diesel is now 77.1 cents above its level from a year ago and is slightly down from declines in the mid-80s and higher for most of 2011 prior to recent weeks.

Oil barrel prices are currently trading at $96.17 on the New York Mercantile Exchange.

A Reuters news story stated that a U.N. International Atomic Energy Agency report due this week is expected to show recent activity in Iran aimed at developing nuclear bombs, citing Western diplomats as the source.

“We have a temporary solution to the Greek political crisis, strong seasonal demand for heating oil, low gas oil stockpiles in Europe, low distillate stockpiles in the U.S., and China becoming a net diesel importer in November,” said Carsten Fritsch, an energy analyst at Commerzbank in Frankfurt. “There is also the geopolitical risk from the Iran nuclear program.”

Prior to this oil spike, oil prices have primarily been in the $80-to-$90 per barrel range, with prices still well above last year’s average of $79.64 per barrel, which means gasoline pump prices should remain higher than last year’s levels, according to various sources.

Mike Regan, president of TranzAct Technologies and contributing blogger for LM, said that everyone assumes what is driving oil prices is supply and demand. But he said one cannot look at oil prices without considering what is happening in global currency markets.

“There are ancillary factors at work affecting the price of oil,” said Regan. “That is a factor that can be very difficult to gauge. It is a level of volatility we are still not used to seeing. The volatility of the U.S. dollar, which is a variable we had not had to factor [into energy prices as much] is a reality we are forced to live with.”

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Seasonally-adjusted (SA) for-hire truck tonnage in March was up 1.1 percent on the heels of a revised 2.8 percent (from 3.1 percent) February decline, with the SA index at 133.5 (2000=100). This is off 0.3 percent from the all-time high for the SA of 135.8 from January 2015 and is up 5 percent annually.

Intermodal volume was up 8.1 percent annually at 280,016 containers and trailers. This outpaced the week ending April 11 at 270,463 and the week ending April 4 at 271,127. AAR said this tally marks the second highest weekly output it has ever recorded as well as the first time container and trailer traffic was higher than carloads for a one-week period.

Ocean cargo carrier service reliability across the three core East-West trades hit a five-month peak in March with an aggregate on-time performance of 64 percent, according to Carrier Performance Insight, the online schedule reliability tool provided by Drewry Supply Chain Advisors.

The Airforwarders Association, which represents more than 360 companies that move air cargo through the supply chain, today applauded an agreement reached by Congressional leaders to advance legislation giving the President authority to conclude key global trade agreements.

Despite great opportunity for growth, the logistics market in Latin America is lagging behind other emerging markets thanks in part to its notoriety for corruption, violence, poor infrastructure and government bureaucracy.

Article Topics

News · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA