On-highway diesel prices dropped again this week nearly 2-and-a-half cents to $2.465 a gallon compared with $2.489 last week, the Energy Information Administration (EIA) reported.
Even in California, which has had prices closest to the $3-a-gallon mark, prices are inching away from that figure, with diesel selling there Monday for $2.863.
Truckers in EIA’s West Coast reporting region saw prices of $2.757 Monday compared with $2.782 the week prior and the West Coast Less California area had prices of $2.626 compared with $2.655 on June 19.
The cheapest EIA reporting sector for diesel was the Gulf Coast, where diesel is barely above the $2-a-gallon mark at $2.305.
It was hoped that production cuts by OPEC would lift the price of oil (and hence diesel) higher, and while it appears that OPEC is complying their promised cuts, Libya continues to increase production, according to news sources Monday.
Analysts say that part of the reason oil prices are sliding is that U.S. oil producers continue to ramp up production, with rig counts still rising, oil service Baker Hughes reported. And diesel has been right behind.
That helps flood the market with more oil, bringing prices down in the supply-and-demand scenario.
For diesel prices by EIA reporting region, click here.