The price of national on-highway diesel dribbled downward Monday to $3.993 — 1.3 cents below what it was last week at $4.006 and the fifth straight week diesel prices have decreased.
This is the first time since Jan. 28, which saw the national diesel price sitting at $3.927, when diesel has been below the $4-a-gallon mark.
Diesel has been slowly but surely following the downward trend of oil since March 11. However, oil gained more than $4 in recent sessions Monday, driven by signs of strength in the U.S. economy. Higher prices motivated investors to cash in.
Diesel prices were down in all reporting sectors of the Energy Information Administration of the U.S. Energy Department Monday but the West Coast sector and the California sector, no surprise since diesel is usually higher in those regions.
In fact California had the highest-posted price of any region — $4.200 — compared with $4.147 the week before. The New England sector reported the second-highest price Monday at $4.148, compared with $4.050 the week before.
The EIA expects oil (and hence diesel) to be “volatile” all this year with swings up and down.
There is usually a lag time between when the spot price changes and when the retail price changes, and the refining costs and profits, and the distribution and marketing costs and profits can vary from month to month.
For more data on prices in each reporting sector click here.
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