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Truckers paying a penny less for diesel; national average at $3.843 a gallon

National on-highway diesel is selling for 5.3 cents less than it was this same time last year.

The Trucker News Services

8/11/2014

Truckers were paying less for diesel fuel today in most of the United States except for the Energy Information Administration’s West Coast Less California reporting sector, where it went up five tenths of a penny to $3.935 a gallon, and in the West Coast region, where it stayed the same.

Meanwhile, the national average decreased by one penny, to $3.843 a gallon compared with $3.853 the week prior.

Only two regions are still selling diesel for above $4 a gallon: the West Coast ($4.016), and California, ($4.084).

National on-highway diesel is selling for 5.3 cents less than it was this same time last year.

The reasons are many and could change at any time. Much of it has to do with the price of oil, which fluctuates according to supply and demand. Since diesel is a distillate of oil, it usually fluctuates right along with oil.

This year, according to the Wall Street Journal, the oil market has managed to hold off threats of an oversupply by processing more oil and importing less. As crude production keeps increasing, the challenge will be to keep prices from “tanking” next year, the publication predicted.

Despite growing production, the benchmark U.S. oil price has traded at $7.68 a barrel below Brent, on average, this year, up from an average discount of $10.59 a barrel in 2013, according data provided by FactSet.

The reason is that new pipelines have cleared bottlenecks, allowing oil supplies to more easily reach refineries on the Gulf Coast. Refiners also ran at higher rates to process more oil and reduced imports by between 350,000 and 400,000 barrels a day, according to Credit Suisse.

For more details on prices in individual regions, click here.

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

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