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
Maximizing Your Sales Team’s Effectiveness
Companies need to examine how to restructure their sales team to respond to different customers and subsequent buying behaviors and preferences.
Download Today!
From the November 2017 Logistics Management Magazine Issue
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships into true, collaborative partnerships—and greatly strengthened its logistics and supply chain operations in the process.
34th Annual Quest for Quality Awards: 2017 Awards Dinner
Trucking Regulations: Washington U-Turns; States put hammer down
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Make Your Products Smarter in the Supply Chain with the IoT
This webinar explores how temperature-sensing smart labels and inexpensive NFC tags are being used to extend product safety and efficiency beyond the shipping dock while also building a communication bridge to your customers.
Register Today!
EDITORS' PICKS
2017 NASSTRAC Shipper of the Year: Mallinckrodt; Mastering and managing complexity
An inside look at how a large pharmaceutical firm transformed its vendor and supplier relationships...
2017 Alliance Awards: Recognizing outstanding supply chain partnerships
In an era where effective supply chain collaboration is both highly valued and elusive, Logistics...

26th Annual Study of Logistics and Transportation Trends: Transportation at Digital Speed
While a majority of companies strongly agree that transportation is a strategically important...
34th Annual Quest for Quality Awards: Winners Revealed
Which carriers, third-party logistics providers, and North American ports have crossed the service...