Diesel prices fall 2.5 cents, reports EIA
November 14, 2013
The overall decline in diesel prices remains unchanged, with the Department of Energy’s Energy Information Administration (EIA) reporting this week that the average price per gallon of diesel fell 2.5 cents to $3.832.
According to EIA data, this represents the lowest average price per gallon for diesel since the week of July 1, when it came in at $3.817 per gallon.
Prices have dropped for three straight weeks, and this week followed declines of 1.3 cents and 1.6 cents, respectively, the previous two weeks. What’s more, based on EIA data, the average price per gallon has not increased over the last ten weeks.
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 $93.37 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.
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