After inching up for the past four weeks, U.S. on-highway diesel prices took a nose dive of 1.5 cents Monday to a national average of $2.564 a gallon.
That’s not surprising: Since last Monday the price of oil has fallen more than 8 per cent after its biggest week-on-week drop in four months. More about that later.
All 10 of the Energy Information Administration’s reporting regions showed drops in diesel prices, some much more than others. Diesel prices in the West Coast Less California sector fell 4.3 cents a gallon to $2.736 followed by the West Coast, down by 3.1 cents a gallon to $2.846, and California, down 2 cents to land at $2.936 a gallon. California has been teetering just below the $4-a-gallon mark for months.
Diesel in the Gulf Coast region went down the least, only 1 cent, and it’s also the cheapest in the country at $2.419 a gallon. California, no surprise, has the most expensive diesel.
Meanwhile Brent crude, the global benchmark, fell to a session low of $50.85 a barrel today, while West Texas Intermediate prices dropped to $47.90 a barrel.
The Organization of the Petroleum Exporting Countries (OPEC) plans to reduce oil production from its member countries by around 1.8m barrels per day (bpd) to prop up prices and cut the global glut but so far there has been little impact on inventory levels, with three of the last four weeks showing substantial increases, analysts reported.
For more details on diesel prices by region click here.