Weekly diesel price drops 6 cents
Sep 6, 2006 11:35 AM
A six-cent drop in the nation's average on-road diesel price granted tank truck carriers a little relief last week when it fell from $3.027 to $2.967 per gallon, according to the Energy Information Administration (EIA).
However, EIA reports that "with the end of the peak gasoline season behind us and the peak heating fuel season not yet here, the market may be simply reflecting the usual shoulder period forces as it transitions from summer to winter seasons, resulting in an absence of product price pressures. Nevertheless, as we get closer to the upcoming winter season, any concerns about the future adequacy of heating oil supplies could keep upward pressure on oil prices.
"With strong global demand for distillate fuel (diesel fuel and heating oil combined), given that diesel fuel markets in Asia and Europe are particularly robust, heating oil prices may rise to attract sufficient imports this winter to balance demand. The fact that diesel fuel prices have not dropped precipitously, along with gasoline, is an indication that the current weakness does not extend to all petroleum product markets. In addition, many of the global situations that concerned oil markets earlier this year have not abated."
The diesel price relief last week was felt across the nation with a high of $3.318 reported in the Rocky Mountain region and a low of $2.850 in the Lower Atlantic area. Nevertheless, the average price per gallon across the United States is still almost 70 cents higher than it was this time last year.
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