Subscribe to our free, weekly email newsletter!


Diesel prices are up for second straight week

By Staff
December 03, 2013

Diesel prices increased for the second straight week, according to data released this week by the Department of Energy’s Energy Information Administration (EIA).

The average price per gallon rose 3.9 cents to $3.883 per gallon, following last week’s 2.2 cent increase, which was the first time prices rose in 11 weeks, which was comprised of nine weeks of declines and two weeks in which prices were flat. During this 11-week period, diesel prices dropped a cumulative 15.9 cents, according to EIA data.

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 recently 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.

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

In this new world of Omni-channel—profitable and efficient anytime, anywhere fulfillment is the goal.

The 19 ocean carrier members of the Ocean Carrier Equipment Management Association (“OCEMA”) have joined with six major East and Gulf coast ports to develop a common streamlined “Terminal Weighing Approach.”

Rail carloads, at 238,353 were down 11.4 percent annually, and U.S. containers and trailers were off 7.2 percent annually at 260,026.

This network is comprised of a multifaceted approach that will mesh its global logistics network with 3D printers at more than 60 U.S.-based The UPS Store locations and a collaboration with SAP to foster an end-to-end industrial offering that will mesh SAP’s supply chain offerings with Big Brown’s on-demand manufacturing services and global logistics network.

As global supply chains grow in size, reach, and complexity, they become more vulnerable to a myriad of threats and hazards that can damage businesses and threaten the global economy: terrorist attacks, natural disasters, corruption, labor disputes, and more.

Article Topics

News · EIA · Diesel Prices · Diesel · All topics

Comments

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


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA