In The News

Big demand puts diesel over $4

The national average price for diesel is back above the $4 mark. ProMiles showed an average just shy of $4.03 per gallon on Monday, Nov. 14, an increase of 5 cents over the weekend.

Connecticut topped the list with a $4.403 average followed by Rhode Island and Washington state at $4.299. A 200-gallon purchase in Connecticut, for example, now costs $880.

The U.S. Energy Information Administration, which tallies the national and regional averages on a seven-day cycle, reported the average at $3.987 on Monday. That was up a full 10 cents from the previous week and the highest it’s been since May.

Each of the nine regions that the EIA tracks showed increases for the week of at least 5 cents. The Midwest region, for example, saw a 12-cent increase.

Following are the regional averages for the week as reported by the EIA.

U.S. – $3.987, up 10 cents
East Coast – $3.964, up 8.9 cents
New England – $4.030, up 8 cents
Central Atlantic – $4.085, up 8.8 cents
Lower Atlantic – $3.906, up 9 cents
Midwest – $3.987, up 12.4 cents
Gulf Coast – $3.882, up 8.6 cents
Rocky Mountain – $4.093, up 11.5 cents
West Coast – $4.171, up 6.2 cents
California – $4.270, up 5.7 cents

Tom Kloza, analyst and publisher with the Oil Price Information Service, says prices are reacting to recent spikes in crude oil prices around the world coupled with an overall demand for diesel fuel.

Kloza told Land Line Now that offshore crude oil has reached $115 per barrel while U.S. domestic crude has reached $97 per barrel.

“But beyond that, diesel is a big, big profit maker worldwide. And it’s a product that’s in demand, particularly for a lot of emerging countries that have a big appetite for fuel,” Kloza said.

U.S. oil was trading at $98.37 a barrel on Monday, down about 62 cents over the weekend. Crude oil was trading at $80 in early October.

www.LandLineMag.com