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On-highway diesel drops seven-tenths of a penny to $3.814 a gallon

Diesel prices follow oil prices eventually, and sliding oil prices Tuesday will likely mean diesel prices that drop on down the road.

The Trucker News Services

9/2/2014

On-highway diesel prices dropped seventh-tenths of a penny Tuesday to $3.814, compared with $3.821 the week before, the Energy Information Administration (EIA) reported.

Only two of the EIA’s reporting sectors, the West Coast (up 2.0 cents) and the West Coast less California, (up 5.2 cents a gallon), showed increased prices, with the remaining eight regions reporting diesel prices sliding slightly more or less than a penny.

The California sector, which usually sees increases, reported diesel prices down five tenths of a penny to just above the $4-a-gallon mark at $4.079.

The only other EIA region where diesel was selling above $4 a gallon was the West Coast, where truckers were paying $4.030 a gallon.

Diesel prices follow oil prices eventually, and sliding oil prices Tuesday will likely mean diesel prices that drop on down the road.

Brent crude oil futures fell to the lowest level in 16 months, pressured by the prospect of slowing oil demand growth in China and Europe, while a strong dollar and ample supplies pushed U.S. prices to a seven-month low, Fox Business reported.

Oil prices on both sides of the Atlantic have been in steady decline since the end of June as concerns faded over supply disruptions from Iraq, Libya and Russia. Continued supply from key producing regions and tepid demand has left global markets well stocked.

Brent crude for October delivery fell $2.45 to settle at $100.34 a barrel, its lowest closing price since May 1, 2013. U.S. crude dropped $3.08 from Friday's close to settle at $92.88 a barrel, the lowest since Jan. 14.

There was no trading in the United States on Monday because of the Labor Day holiday.

To see diesel prices in all EIA’s 10 reporting sectors click here.

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

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