Subscribe to our free, weekly email newsletter!


Diesel prices fall another 5.1 cents, says EIA

By Jeff Berman, Group News Editor
June 05, 2012

Diesel prices continued their ongoing decline, dropping 5.1 cents to $3.846 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

This most recent decline marks the eighth straight weekly decrease and follows last week’s 5.9 cent decrease, which was the single largest weekly decline since the the week of December 19, when it dropped 6.6 cents to $3.828. And this week’s price is the lowest since February 6, when prices were at $3.856 per gallon.

Diesel prices have fallen a cumulative 30.2 cents over the last eight weeks. Prior to this eight week stretch of declining prices, the price per gallon had been above the $4 per gallon mark for 12 straight weeks.

On an annual basis, diesel is 9.4 cents less than it was a year ago.

In its recently updated short-term energy outlook, the EIA is calling for diesel prices to average $4.06 per gallon in 2012 and $4.03 in 2013, with oil pegged at $104.12 per barrel in 2012 and $103.75 in 2013.

Oil prices are currently at $83.74 on the New York Mercantile Exchange as of earlier today. An Associated Press report noted that prices are approaching and eight-month low, due to a heavy amount of uncertainty regarding the European debt and economic crisis.

This is down sharply from prices in the $106 range just weeks ago.

Even with recent declines, shippers continue to keep a watchful eye on fuel prices and are taking steps to reduce mileage and cut down on empty miles. Steps like this were cited by many shippers at the NASSTRAC Logistics Conference & Expo last month.

And as previously reported by LM, shippers continue to take steps to minimize the impact of fluctuating fuel costs. Over the years, they have maintained that this is imperative as higher diesel prices have the potential to hinder growth and increase operating costs, which will, in turn, force them to raise rates and offset the increased prices to consumers.

Robert W. Baird & Co. analyst Ben Hartford recently observed in a research note that “[f]alling fuel prices are a tailwind for truckload carriers on two fronts: 1) the lag in fuel surcharge recovery provides for greater near-term recovery in fuel expense, and 2) lower energy prices support marginally improved consumer confidence.”

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

Lyon, France-based Norbert Dentressangle, a $5.5 billion global third-party logistics (3PL) services provider focused on global logistics, transport, ocean, and air services, said today it has acquired Des Moines, Iowa-based Jacobson Companies, a value-added warehousing (VAW) company, for $750 million from private equity firm Oak Hill Capital Partners.

Download the newly released research report, "Transportation Management Systems" conducted by Peerless Research Group (PRG) on behalf of Supply Chain Management Review and Logistics Management magazines. Learn what logistic experts are saying about their current supply chain technology infrastructures, how they tackle the transportation component, and revealed the gaps that still need to be filled in order to attain end to-end visibility of a streamlined supply chain.

From cost center to growth center. Get insightful opinions on changes in the marketplace from this independent survey of warehouse personnel. Motorola Solutions examined the current warehousing marketplace in our 2013 Warehouse Vision Report, conducted April-May of 2013.

Even though not all publicly-traded less-than-truckload carriers (LTL) have posted second quarter earnings yet, the early consensus for those that have issued results is looking very good.

The advance estimate for second quarter GDP at 4.0 percent could serve as a sign of a steadier and improving economy.

Article Topics

News · EIA · Diesel Prices · Diesel · All topics

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA