Diesel prices see slight decline, falling 0.1 cents to $2.420 per gallon

Diesel prices continued a recent stretch of price fluctuation this week, the Department of Energy’s Energy Information Administration (EIA) reported yesterday.

The average price per gallon dropped 0.1 cents to $2.420 per gallon, following last week’s 0.9 cent increase, and a 0.1 cent increase and a 0.3 cent decline the previous two weeks. The 0.3 cent decline marked the first time prices dropped in five weeks.

Compared to the same week a year ago, the average price per gallon is down 0.1 cents.

And West Texas Intermediate Crude is currently trading at $46.36 per barrel on the New York Mercantile Exchange today. 

A recent Wall Street Journal report observed that the oil market has been largely focused on the Organization of the Petroleum Exporting Countries’ tentative plan to cut production, which it described as a deal that could help reduce the global supply glut and bring the market more into balance. The report added that even as analysts have expressed skepticism that OPEC members could reach a final agreement—or be able to enforce it after their November meeting—some traders are pointing to the surprising drawdown in U.S. inventory as another reason why crude prices could continue to climb.

Shippers are vigilant in keeping a watchful eye on fuel prices, due to the fact that in most modes they’re paying a fairly high percentage in terms of their average fuel surcharge above standard base rates. That was made clear in the findings of a recent Logistics Management (LM) readership study of more than 200 buyers of freight transportation and logistics services.

According to the survey, 5.5% of respondents noted that average fuel surcharges were more than 20% above base rates, with 11.4% noting that they were 16% to 20% higher.

And 17.9% and 24.9% of shippers said they were in the 11% to 15% and 6% to 10% ranges, respectively, with 28.4% stating that their average fuel surcharges were 5% or less above base rates.