Subscribe to our free, weekly email newsletter!


Diesel prices head up for second straight week

By Jeff Berman, Group News Editor
October 25, 2011

Diesel prices this week increased 2.4 cents per gallon to $3.825, according to the Department of Energy’s Energy Information Administration (EIA).

This increase follows an 8 cent bump from the previous week, which snapped a streak of five straight weeks of declining prices. Prior to that increase, prices were down a cumulative 14.7 cents for the preceding five weeks.

The current price per gallon now stands 29.9 cents less than the high of $4.124 per gallon the week of May 2, which marks the highest level for diesel prices since August 2008, when prices were approaching $5 per gallon. The price per gallon for diesel fuel has not exceeded the $4 mark since the week of May 16, when it hit $4.061.

The price per gallon for diesel is now 75.8 cents above its level from a year ago and is down declines in the mid-80s and higher for most of 2011 prior to recent weeks.

In its short-term energy outlook, the EIA is calling for diesel prices to average $3.80 per gallon in 2011 (down from $3.80) and $3.73 in 2012 (down from $3.87), with oil pegged at $92.36 per barrel in 2011 and $88 in 2012.

Oil barrel prices are currently trading at $92.83 on the New York Mercantile Exchange. The Associated Press reported that oil has jumped 21 percent in three weeks amid growing investor optimism that European leaders will devise a plan to limit the damage from a possible default of Greek sovereign debt, with details of the plan expected to be announced tomorrow.

With oil prices remaining in the $80-to-$90 per barrel range, prices are still well above last year’s average of $79.64 per barrel, which means gasoline pump prices should remain higher than last year’s levels, according to various reports.

While diesel prices have been below the $4 per gallon mark, shippers and carriers have told LM the still relatively high prices remain a concern. While many have indicated that prices at current levels are still digestible, they cautioned that could quickly change depending on how quickly prices rise.

“Looking forward, the U.S. economy is clearly not out of the weeds, a fact that makes it difficult for supply chain managers to keep their eyes on the road, wrote Derik Andreoli, Ph.D.c. Senior Analyst at Mercator International, LLC, and LM columnist, wrote in a recent edition of LM. “We know there’s a turn up ahead, but it’s still difficult to see whether the road is going to take us to recovery and even higher fuel prices, or stagnation/recession with high fuel prices.”

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

An export rebound continues to build steam at the Port of Oakland, as it also continues to ease drayage congestion with innovative logistics management strategies.

Asset-light transportation and logistics services provider Roadrunner Transportation Systems Inc. (RRTS) said this week it has expanded its less-than-truckload (LTL) service through the addition of outbound service from Vancouver, British Columbia. RRTS said that this service will open the western half of Canada to its LTL Freight’s outbound service.

Carloads saw a 16.1 percent, or 180,598, annual decline at 944,339, and intermodal containers and trailers in April at 1,972,828, were off 11.8 percent or 264,327 carloads annually.

Total intermodal volume movements—at 4,156,999—were up 2.0 percent annually and outpaced the 0.3 percent annual growth rate from the fourth quarter of 2015.

Industry analysts contend that the Teamsters are not declaring a strike outright, but rather, voting to give their leadership permission for such an action.

Article Topics

News · Logistics · Transportation · EIA · Diesel Prices · Diesel · All topics

Comments

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


© Copyright 2016 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA