Diesel prices are down for the fourth straight week
EIA reported that the price per gallon for diesel dropped 1 cent to $3.822 per gallon, marking the fourth straight week prices have fallen
in the NewsState of Logistics 2016: Pursue mutual benefit GCCA report shows 8.6% increase in cold storage capacity worldwide since 2014 Automated material handling equipment market is expected to reach $44.68 billion by 2022 Honeywell completes acquisition of Intelligrated U.S.-NAFTA freight value drops 6.4 percent, reports BTS More News
The average price per gallon of diesel gasoline continued its ongoing series of declines, according to data released this week by the Department of Energy’s Energy Information Administration (EIA).
EIA reported that the price per gallon for diesel dropped 1 cent to $3.822 per gallon, marking the fourth straight week prices have fallen, with this week’s price now standing at its lowest level since the week of July 1, when it came in at $3.817 per gallon.
This 1 cent drop-off follows decreases of 2.5 cents, 1.3 cents, and 1.6 cents, respectively over the previous three weeks. Prices have not increased at all over the last 11 weeks, with two of those weeks—October 14 and October 21—showing flat growth each at $3.886 per gallon.
In its recent update of the short-term energy outlook, the EIA expects the average price of diesel for 2013 to be $3.96 per gallon, just ahead of 2012’s $3.97. For 2014, it expects the average price to be 3.76 per gallon.
The general sentiment by industry observers in regards to declining gasoline prices is due largely to declining crude oil prices, with the average price of crude oil on the New York Mercantile Exchange at $92.75 on the New York Mercantile Exchange at press time.
Other factors include lukewarm consumer sentiment and strong momentum in domestic natural gas production, too.
And the International Energy Agency recently stated that the U.S. will pass Russia and Saudi Arabia as the world’s top oil producer by 2015, coupled with being close to energy self-sufficient in the next two decades, as well as gains from shale formation output, too, according to a Bloomberg report. The report added that crude prices will head up to $128 per barrel by 2035.
Logistics Management oil and gas columnist Derik Andreoli recently observed that on the diesel side, oil production in the U.S. and Iraq continues to grow rapidly while emerging market demand will continue its lackluster performance.
Regardless of the fluctuation in diesel prices, shippers are cognizant of the impact diesel prices can have on their bottom line—for better or worse.
And they continue to be proactive on that front, too, by taking steps to reduce mileage and transit lengths when possible as well as cut down on empty miles. And even through shippers want to adjust budgets in order to offset the increased costs higher fuel prices bring, it is not always an easy thing to manage.
About the AuthorJeff 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. Contact Jeff Berman
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!
Megatrends in ocean freight Ocean Cargo Roundtable: What’s in store for 2017? View More From this Issue