Diesel prices fall for ninth straight week
June 12, 2012
The decline in diesel prices has officially cracked the two-month mark, with prices following for the ninth straight week, according to the Department of Energy’s Energy Information Administration (EIA).
EIA reported yesterday that prices fell 6.5 cents to $3.781 per gallon, following last week’s 5.9 cent dip, which before this week represented the largest weekly decline since week of December 19, when it dropped 6.6 cents to $3.828. What’s more, the current price per gallon stands as the lowest weekly diesel price since the week of October 10, which was $3.721 per gallon.
Since the nine-week stretch of declining diesel prices began, prices have fallen a cumulative 36.7 cents, according to EIA data. . Prior to that, the price per gallon had been above the $4 per gallon mark for 12 straight weeks.
Compared to this point a year ago, diesel prices are down 17.3 cents.
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 is currently trading at $82.46 per barrel on the New York Mercantile Exchange. A Bloomberg report stated that “OPEC will maintain oil-output quotas while prices plunge as Europe’ s debt crisis and China’s slowing growth curb fuel demand.”
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.
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