Diesel prices inch up slightly, reports EIA

Diesel prices were up 0.7 cents this week, bringing the average price per gallon to $3.91, according to the Department of Energy’s Energy Information Administration

By ·

Diesel prices were up 0.7 cents this week, bringing the average price per gallon to $3.91, according to the Department of Energy’s Energy Information Administration (EIA).

Prices have gone up for three straight weeks, with this week following gains of 3 cents and 0.2 cents, respectively, over the previous two weeks. 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 0.1 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 $94.34 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 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!

Article Topics

Diesel · Diesel Prices · EIA · All Topics
Latest Whitepaper
Private Fleet vs. Dedicated: Which one is right for you?
Having the right fleet for your business can give you an advantage over the competition and lower transportation costs.
Download Today!
From the April 2017 Issue
While adoption rates have remained relatively flat, yard management systems (YMS) are helping logistics operations turn that important space between the loading dock and the gate into a vital link in the supply chain.
Information Management: Wearables come in for a refit
2017 Air Cargo Roundtable: Positive Outlook Driven by New Demand
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Maximize Your LTL Driver Adherence with Real-time Feedback
This webinar shows how companies are using real-time performance data to optimize the scheduling of their city fleets, as well as the routing of their standard, accelerated and time-critical shipments.
Register Today!
EDITORS' PICKS
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...

ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...