Diesel prices are up for second straight week
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
in the NewsState of Logistics 2016: Pursue mutual benefit Don’t sleep on the truckload spot market AAR reports mixed U.S. carload and intermodal volumes for week ending November 26 Global motion control shipments increase 5% in first nine months of 2016 Orbis welcomes new manufacturing vice president More News
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!
Warehouse & DC Operations Survey: Ready to confront complexity 2016 Quest for Quality Awards Dinner View More From this Issue