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Diesel prices down seven tenths of a penny to $3.918 a gallon

A potential shortfall in investment in production in the Middle East could create a $15 spike in the oil price by 2035, the energy arm of the Organization for Economic Co-operation and Development (OECD) said, as reported by Reuters.

The Trucker News Services

6/2/2014

National on-highway diesel prices were down seven tenths of a penny Monday to $3.918 a gallon, the Energy Information Administration (EIA) of the U.S. Energy Department reported.

Diesel prices were down in nine out of the EIA’s 10 reporting regions, with the Gulf Coast region going neither up nor down but staying exactly the same as last week.

Diesel prices have been easing down since April 28, largely because of unrest in oil-producing countries and in part because of oil inventory build-up.

However, truckers shouldn’t get too comfortable with lower prices. A potential shortfall in investment in production in the Middle East could create a $15 spike in the oil price by 2035, the energy arm of the Organization for Economic Co-operation and Development (OECD) said, as reported by Reuters.

The world will need a total of $40 trillion invested in energy supply and $8 trillion on energy efficiency by 2035 to meet growing demand and falling output from mature sources of energy, EIA said in a report.

A large proportion of this will need to come from the Middle East, as a rise in non-OPEC production such as U.S. shale oil starts to lose steam in the mid 2020s, it’s predicted.

But the EIA was wary of prospects for a large enough increase in investment from the region.

"The prospects for a timely increase in oil investment in the Middle East are uncertain: There are competing government priorities for spending, as well as political, security and logistical hurdles that could constrain production," the report said. 

To see more details on regional prices click here.

The Trucker staff can be reached to comment on this article at editor@thetrucker.com.

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