Diesel prices are down for third straight week, reports EIA

Diesel prices dropped for the third straight week, according to data released by the Department of Energy’s Energy Information Administration (EIA).

Falling 1 cent to $2.389 per gallon, this follows declines of 0.8 cents and 0.2 cents, respectively, over the previous two weeks.

This continues a recent stretch of fluctuating prices, with these last three weeks of declines following gains of 3.9 cents and 6 cents over the previous two weeks, with the latter marking the largest weekly gain since the week of May 2, when it headed up 6.8 cents. And prior to those two weeks of gains, there was a stretch of seven straight weekly declines for a cumulative 11.6 cent decrease. But that was nearly evened out by gains the following two weeks  with a total increase of 9.9 cents.

On an annual basis, this week’s average price is down 10.4 cents annually.

U.S. West Texas Intermediate Crude Oil is currently trading at $44.30 per barrel.

A recent Reuters report observed that oil prices are caught between concerns about oversupply and a strong dollar on the as well as the prospect of a potential production freeze, adding that the huge global oil oversupply that has weighed on prices for the past two years may not clear until the second half of 2017.

Shippers are vigilant in keeping a watchful eye on fuel prices, due to the fact that in most modes they’re paying a fairly high percentage in terms of their average fuel surcharge above standard base rates. That was made clear in the findings of a recent Logistics Management (LM) readership study of more than 200 buyers of freight transportation and logistics services.

According to the survey, 5.5% of respondents noted that average fuel surcharges were more than 20% above base rates, with 11.4% noting that they were 16% to 20% higher.

And 17.9% and 24.9% of shippers said they were in the 11% to 15% and 6% to 10% ranges, respectively, with 28.4% stating that their average fuel surcharges were 5% or less above base rates.