National average on-highway diesel prices went down slightly more than a nickel Monday, ending up at $2.617 a gallon, not a shocker since crude oil has dropped from $60.24 a barrel June 1 to $44.82 a barrel August 10.
Diesel was selling for $2.668 last week, down from $2.723 the week prior.
On-highway diesel prices, reports the Energy Information Administration (EIA), have decreased off and on since January 5, when they were $3.137, mostly trending downward but rallying for as many as four weeks at a time only to lose ground again.
And each time diesel went back up, it didn’t go up as far as it was on January 5, sinking lower and lower, following oil prices struggling with a global oil glut, caused by factors such as less oil dependence by mega users like China, and more oil coming out of the U.S.
Benchmark U.S. oil futures for September delivery are nearing the six-year low hit in March, the Wall Street Journal reported, adding that the oil market is signaling prices could stay lower for still longer, delivering a fresh blow to hard-hit energy exploration-and-production companies.
All of the EIA’s 10 reporting sectors Monday reported diesel prices of below $3 a gallon — even California — which traditionally has the most expensive diesel. Truckers there were paying $2.960 a gallon for diesel compared with $3.024 the week before.
Truckers in the Gulf Coast region were paying the least, with diesel ringing up in that sector at $2.487 a gallon compared with $2.536 August 3.
For price details on all reporting sectors click here.
It’s likely that diesel will tag along behind oil and continue downward for who knows how long.
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