Subscribe to our free, weekly email newsletter!


Diesel prices move up 3.9 cents to $3.573 per gallon, says EIA

By Jeff Berman, Group News Editor
February 23, 2011

Diesel prices continued to surge, with the price per gallon up 3.9 cents this week to $3.573, according to the Department of Energy’s Energy Information Administration (EIA). On an annual basis, diesel prices are up 74.1 cents.

Diesel prices have gone up for 12 straight weeks for a cumulative 41.1 cent gain, coupled with prices being above $3.40 per gallon for the sixth straight week. Current prices are at their highest level since reaching $3.659 the week of October 13, 2008.

This week’s price also represents the 21st consecutive week prices have been at $3 per gallon or more. Prior to the week of October 4, when diesel prices hit $3.00 per gallon, the price per gallon of diesel was below the $3.00 mark for 18 straight weeks.

Oil barrel prices are currently trading at $100.01 on the New York Mercantile Exchange as of press time and could potentially go higher due to violence continued to rage in Libya, which has led to several oil companies suspending or shuttering their operations in the oil-rich North African country, according to a Wall Street Journal report.

Some experts maintain that the price per gallon of diesel and regular gasoline could approach the $4 per gallon level, due to things like higher global demand for oil and a cold winter in many parts of the United States and Europe, leading to higher oil prices.

And as LM has reported, this could to a scenario where shippers need to be prepared to plan for higher energy prices, especially when taking into consideration the relatively low fuel prices they factored into transportation budgets for much of 2010.

The EIA is calling for 2011 crude oil prices to hit $93.26 per barrel, according to its recently-revised short-term energy outlook. This is above a previous estimate of $85.17 per barrel for 2011.  On the diesel side, the EIA is calling for the price per gallon of diesel in 2011 to average $3.43, up from a previous estimate of $3.40. 

A research report from Avondale Partners analyst Donald Broughton noted that the large spike in crude oil prices caused by increasing geopolitical risk in the Middle East will provide further fuel for the continuing rise in diesel prices.

Michael A. Regan, CEO & Chairman of the Board, TranzAct Technologies, wrote in a recent blog entry for LM that these ongoing diesel increases could have a hazardous effect on shippers’ freight budgets.

Regan explained that “shippers could be paying as much as 15% to 20% more for freight than they did in 2010 (depending on their fuel surcharge calculation).”

For more articles on diesel prices, please click here.

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

As expected, global trade dipped from August to September but still saw annual gains, according to data issued this week by Panjiva, an online search engine with detailed information on global suppliers and manufacturers.

Transportation and logistics merger and acquisition (M&A) activity in the third quarter saw annual gains, which were driven by smaller deals in the trucking logistics, shipping, and passenger air sectors, according to data issued in the Intersections report by PwC this week.

With the holidays rapidly approaching, it appears retailers are not quite done getting inventory set up and on the shelves in time for what is expected to be a fairly active shopping season. That much was evident based on recent data for September volumes issued by the Port of Los Angeles (POLA) and the Port of Long Beach (POLB).

Join Industry Expert Adrian Gonzalez for this educational webinar on the tenets and the benefits of Closed-Loop Operational Management. You’ll learn how Closed-Loop Operational Management optimizes orders, inventory, and transportation concurrently, and how it is able to optimize large-scale problems on a daily basis.

In a separate conference call following CP’s third quarter earnings release call yesterday, CP CEO Hunter Harrison make myriad convincing points for a merger between CP and CSX and offered up his take in general industry M&A as well.

Article Topics

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

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA