Subscribe to our free, weekly email newsletter!


Diesel prices head up 3 cents, according to EIA

By Staff
January 02, 2014

The average price per gallon of diesel gasoline jumped 3 cents to $3.903 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

This marks the second straight weekly increase, following a 0.02 gain to $3.873 per gallon the week of December 23. According to EIA data, these gains were preceded by two weeks of declines for a cumulative 1.2 cent drop during the weeks of December 9 and December 17, and prior to that saw a two-week stretch in which prices headed up a cumulative 6.1 cents.  On an annual basis, the average price per diesel is down 1.5 cents.

Prior to that two-week run of increases, prices were down for 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 $3.92 per gallon, below 2012’s $3.97. For 2014, it expects the average price to be 3.77 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 $97.70 on the New York Mercantile Exchange at press time.
Other factors include lukewarm consumer sentiment and strong momentum in domestic natural gas production, too. The Associated Press reported that the current price is due in part to reduced trading volumes and the impact of a strengthening dollar.

And the International Energy Agency recently stated in a report 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!

Recent Entries

Transportation and logistics bellwether UPS began 2015 in solid fashion with first quarter revenue up 1.4 percent at $14.0 billion and operating profit up 11 percent at $1.7 billion. Earnings per share were up 14 percent at $1.12, which exceeded Wall Street expectations of $1.09, while revenue was shy of the Street’s $14.27 billion estimate.

Last week, the United States Department of Transportation took further steps to address various issues identified in recent train accidents involving crude oil and ethanol shipped by rail. The announcement was made by DOT with other DOT agencies, including the Federal Railroad Administration (FRA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA).

Logistics Management Group News Editor Jeff Berman had an opportunity to interview Derek Leathers, President and Chief Operating Officer of Werner Enterprises, at this month's NASSTRAC Shippers Conference and Transportation Expo in Orlando. They discussed various aspects of the truckload market, including prices, fuel, and regulations.

During this webcast our presenters will apply the findings of the 23rd Annual Trends & Issues in Transportation and Logistics Study to the world of shipper-carrier decision making. They'll examine the primary aspects that will influence the future direction for shipper-carrier decision-making.

For February, the month for which most recent data is available, the SCI dropped to -1.0 from January’s 2.6, with FTR explaining that the short term positive impact from one-time adjustments for rapidly dropping diesel prices and the suspension of the 2013 motor carriers hours-of-service expires later this year.

Article Topics

News · EIA · Diesel Prices · Diesel · All topics

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