Friday, January 19, 2018

Diesel prices down 3.3 cents to $2.498 a gallon


Monday, October 26, 2015
As U.S. domestic oil production slows and its imports increase, oil prices, and therefore diesel, could go back up. (The Trucker file photo)
As U.S. domestic oil production slows and its imports increase, oil prices, and therefore diesel, could go back up. (The Trucker file photo)

On-highway diesel prices were down 3.3 cents a gallon Monday in the latest report from the Energy Information Administration (EIA), putting the national average at $2.498.

All 10 of the EIA’s reporting sectors showed price decreases from last week except California, where diesel was still selling under $3 a gallon at $2.813.

The Midwest region showed a 6-cent decline to $2.540 a gallon, down from $2.600 the week prior.

Diesel Monday was cheapest in the Gulf Coast region where it was ringing up at just $2.299 a gallon.

For more details by region click here.

Diesel prices could start edging back up if the U.S. continues to increase importing oil from countries outside its borders, as has been happening of late.

In fact, in less than a year after OPEC decided to continue its oil production — even with decreasing prices — member countries are gaining back some of the market they gave up to U.S. oil companies in Texas and North Dakota during the shale oil boom, experts warn.

U.S. crude imports declined 20 percent between 2010 and 2014 during the domestic oil energy boom but U.S. imports of oil are on the rise.

Total crude-oil imports rose for three straight months between April and July, according to EIA. Imports of light crude grew more rapidly, from 5.6 percent of total imports in April to 11 percent in July.

If the trend continues, oil pricing will once again be at the mercy of OPEC and other foreign producers as U.S. domestic production slows.

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

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