Diesel spikes 15.6 cents to $3.552

The Trucker Staff

2/25/2008

After jumping 11.6 cents on Feb. 18, the weekly on-highway diesel U.S. average rose another 15.6 cents, up $1.001 from the same week one year ago. On Feb. 25 the average price per gallon rang in at a whopping $3.552.

The price went up in ever region for the week, according to the Energy Information Administration. The most expensive area to buy diesel was the New England region where a gallon costs $3.710, up 12.2 cents from the week before.

For a three week comparison of diesel prices, see chart at the end of this story.

Wheat futures shot up 60 cents a bushel Monday after Kazakhstan said it would slow grain exports by imposing customs duties, adding to concerns over tightening global supplies.

Other commodities traded mixed, with crude oil gaining and gold falling.

Wheat prices have surged to historic highs as bad weather has battered crop after crop around the globe, most recently in India and Canada. Foreign buyers scrambling to lock in supplies have increasingly turned to other wheat-growing countries like the United States and Kazakhstan, which are exporting the grain at record pace. Kazakhstan's Agriculture Ministry said Sunday the country has sold about 75 percent of its wheat and will impose customs duties on what's left — about 110 million bushels.

"In a normal year, 110 million bushels wouldn't be a big deal, but with tight supplies like you have, it's a chunk of wheat," said Jason Ward, analyst with Northstar Commodities in Minneapolis.

In energy futures, crude oil approached $100 a barrel on supply concerns heightened by a Turkish military incursion into northern Iraq and warnings by Iran against further international sanctions.

Light, sweet crude for April delivery rose 5 cents to $98.86 a barrel on the New York Mercantile Exchange after earlier climbing as high as $99.70 a barrel.

Other energy futures also rose. March heating oil added 1.17 cents to $2.7762 a gallon on the Nymex, while March gasoline futures edged 0.63 cent higher to $2.54 a gallon.

In precious metals, gold futures fell sharply after the dollar gained a little muscle against the euro. Gold for April delivery shed $7.60 to $940.20 an ounce on the Nymex, after earlier falling as low as $935.50.

Other metals traded mixed. March silver added 5.5 cents to $18.090 an ounce on the Nymex, while March copper declined 5.75 cents $3.7320 a pound.

Associated Press sources contributed to this report.