Subscribe to our free, weekly email newsletter!


Diesel prices are up for second straight week

image

Average diesel prices for the week of September 20 at $2.960 per gallon were up 1.7 cents from the week of September 13. Prior to this increase, diesel prices have been heading down since reaching $2.991 the week of August 9, falling a cumulative six cents from August 9 to September 6.

By Jeff Berman, Group News Editor
September 21, 2010

Diesel prices inched up for the second straight week on the heels of four straight weekly declines, according to data released this week by the Department of Energy’s Energy Information Administration (EIA).

Average diesel prices for the week of September 20 at $2.960 per gallon were up 1.7 cents from the week of September 13. Prior to this increase, diesel prices have been heading down since reaching $2.991 the week of August 9, falling a cumulative six cents from August 9 to September 6, according to EIA data.

The current average price per gallon of diesel is 33.8 cents higher than a year ago, and prices have now been below the $3 per gallon mark for the last 17 weeks. The current average price per gallon of diesel is 16.7 cents below the 2010 weekly high of $3.127 per gallon from the week of May 10.

Current prices are slightly above the recently-revised EIA recent Short Term Energy Outlook, which is now calling for 2010 average diesel prices to be $2.93 per gallon and $3.10 in 2011.

The EIA is calling for 2010 crude oil prices to hit $79.13 per barrel and 2011 prices at $83.50 per barrel. This is below current oil prices, which are at $74.17 (as of press time), which is nearly even with last week. 

Various report have indicated current oil prices have been relatively low due to higher inventories which is a sign of weaker demand and slowing economic growth. Another reason for declining prices is that summer driving season is over, which means fewer people are driving.

And an Associated Press report noted that oil prices have hovered around the $75 a barrel level since the beginning of summer, with some analysts expecting high crude inventories to weigh on prices even if the economy grows more than expected over the next year.

As LM has reported, even though diesel prices appear to be in check for the time being, freight transportation stakeholders maintain that there is no real rhyme or reason when it comes to assessing the string of rising and falling fuel prices.

Some experts say that the there has never been a period of volatility in fuel prices like there has been in the last year. And with prices currently down by no means indicates prices will stay down or sharply go up.

As oil prices ride the wave of fluctuating prices, a recent Logistics Management reader survey of about 150 logistics, supply chain, and transportation managers found interesting disparities regarding how much shippers’ average fuel surcharges were above their base rates.

The survey revealed that 20 percent felt average fuel surcharges were 6-10 percent above base rates as did another 20 percent say average fuel surcharges were 11-15 percent above base rates. 19 percent said average fuel surcharges were in the 0-5 percent range above base rates, with 17 percent of respondents at 16-20 percent and 9 percent saying average fuel surcharges were 21 percent above base rates.

 

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

The PMI, the ISM’s index to measure growth fell 0.8 percent to 52.7 (a PMI of 50 or greater represents growth). PMI growth has been at 50 or higher for 31 straight months (with the overall economy growing for 74 months), and the current PMI is 1.7 percent below the 12-month average of 54.4.

The current status of FedEx’ planned acquisition of Netherlands-based TNT-NV and a provider of mail and courier services and the fourth largest global parcel operator for $4.8 billion, which was initially announced in April, remains in flux, with continued actions being taken by the European Commission.

Panjiva said that the 1 percent sequential growth was in line with typically flat growth from May to June, as higher monthly growth typically takes hold in July and August in advance of the holiday season.

Hackett officials described this new offering as a short-term index that offers up “the sentiment for trade at a glance,” akin to other key economic metrics like the PMI and Consumer and Carrier confidence indices, while providing access to specifically see where a group of economic indicators are in relation to trade for the current month, too.

While many industry analysts contend that distribution centers near U.S. East Coast ports will see a surge of new business after the Panama Canal expansion, real estate experts say this phenomena is already underway.

Article Topics

News · EIA · Diesel Prices · 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