Subscribe to our free, weekly email newsletter!


Diesel prices are up nearly five cents, says Energy Information Administration

By Jeff Berman, Group News Editor
July 12, 2011

Diesel prices went up for just the second time in ten weeks, according to data from the Department of Energy’s Energy Information Administration (EIA).

The average price per gallon for diesel rose 4.9 cents to $3.899 per gallon, marking its biggest weekly increase since the week of April 4, when prices went up 4.4 cents to $3.976 per gallon.

Prior to this increase diesel prices had fallen a cumulative 27.4 cents since hitting a 2011 high of $4.124 per gallon the week of May 2.

Compared to a year ago, diesel prices are up 99.6 cents.

While diesel saw a relatively sizable gain in its weekly prices, the price per barrel of crude oil is down $1.05 to $95.15 per barrel on the New York Mercantile Exchange, according to media reports.

An Associated Press report stated that oil prices have been following on the heels of a weekend disclosure that inflation in China reached a three-year high in June. It added that rising consumer prices will heap even more pressure on the country’s expanding economy, explaining that could affect energy demand and also pointing out that oil has been climbing on the expectation that China will drive world oil demand.

As LM has reported, even with the recent decline of diesel prices, shippers and carriers
remain concerned about the price of diesel and oil. While many have indicated that prices at current levels are still digestible, they cautioned that could quickly change depending on how quickly prices rise with summer driving season officially here.

And even with declines in prices in recent weeks, the focus from a supply chain perspective for managing fuel price ebbs and flows—for shippers—is more on utilization and efficiency by doing things like driving empty miles out of transportation networks.

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 Institute for Supply Management’s (ISM) August edition of the Manufacturing Report on Business saw its PMI, the ISM’s index to measure growth, fall 1.6 percent to 51.1, following a 0.8 percent decline to 52.7 in July. Even with the relatively slow growth over the last two months, the PI has been at 50 or higher for 31 consecutive months.

Hackett observed in the new report that China’s economy has lost steam, with actual growth falling short of targeted rates, while the United States most recent second quarter GDP reading at 3.7 percent outpaced expected targets, even though it was negatively impacted by gains in manufacturing and retail inventories.

The proposed merger of Cosco and CSCL could spark further container consolidation

The average price dropped 4.7 cents to $2.514 per gallon, which now stands at the lowest weekly average price for diesel since July 2009, when it was at $2.542 the week of July 27, 2009, according to EIA data.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in June dropped 3.8 percent annually to $99.0 billion. This followed a 10.8 percent decline in May to $92.7 billion.

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