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Diesel prices down 2.6 cents Monday to $3.892

National on-highway diesel prices have dropped for three weeks in a row, largely because oil prices — although driven up periodically by global unrest in oil producing countries and by falling stockpiles in the U.S. — doesn’t usually stay up for very long.

The Trucker News Services

6/9/2014

The national on-highway price of diesel went down 2.6 cents Monday to $3.892, compared with the $3.918 a gallon truckers were paying for fuel last week.

In each of the Energy Information Administration’s 10 reporting sectors, in fact, diesel did a nose-dive, with the Central Atlantic region showing prices down 3.7 cents to $4.079 from $4.116 the week prior; New England reporting diesel down 3.2 cents a gallon to $4.092 compared with $4.124 the week of June 2 and the East Coast, where fuel was down 3.0 cents a gallon to $3.983 compared with the $4.013 it was selling for last week.

National on-highway diesel prices have dropped for three weeks in a row, largely because oil prices — although driven up periodically by global unrest in oil producing countries and by falling stockpiles in the U.S. — doesn’t usually stay up for very long.

However, Brent crude on Monday, gained over $1 to surpass $110 a barrel for the first time in June, while U.S. crude rose by nearly $2, as strong Chinese and U.S. data pointed to healthy economic growth and higher demand for oil from the world's top two consumers.

That means diesel will likely be increasing shortly, after lag time for producing and distributing.

Earlier reports were that China’s building boom was lessening and that the country wouldn’t need as much oil as it has consumed in the past, driving prices down.

However, Reuters reported Monday that China's exports beat forecasts in May on firmer global demand, rising 7 percent from a year earlier and quickening from April's increase of 0.9 percent. The strong gains overshadowed an unexpected fall in imports that could signal weaker domestic demand.

Market watchers said U.S. crude's outperformance, in the absence of any clear change in the fundamental picture, could not be sufficiently explained by the Chinese data.

On the other hand, so-called experts can disagree on why oil prices do what they do and sometimes just don’t know.

"Don't let anyone tell you it's China, or U.S. payrolls," said Stephen Schork, editor of “The Schork Report” in Villanova, Pennsylvania. “Something's happening and we don't know what it is."

For details on diesel price per EIA reporting region click here.

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

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