Diesel is up 2.3 cents from last weeks price survey to $4.011 per gallon the Department of Energy reported on Monday. The lowest regional average price was report in the Gulf Coast states at $3.903, while California posted the highest prices in the country, averaging $4.271 statewide.
Diesel is now nearly 84 cents a gallon higher that is was a year ago.
Gasoline prices, on the other hand, dipped 6.8 cents a gallon for a nationwide average of $3.368 per gallon, the biggest weekly drop posted over the past seven weeks.
Even as price march upward, U.S. fuel demand in October rose to the highest level for the month in three years, led by gains in diesel consumption, the American Petroleum Institute said.
Total deliveries of petroleum products increased 2.5% to 19.4 million barrels a day last month from a year earlier, the API said Monday in a report. Year-to-date consumption has averaged 19.2 million barrels a day, up 0.1 percent from the same period in 2010.
“Our economy is growing modestly and the overall demand numbers support that,” John Felmy, chief economist with the Washington-based API, said in the report.
Consumption of distillate fuels, a category that includes diesel and heating oil, rose 12% to 4.24 million barrels a day in October, the highest level for the month since 2006.
Demand for ultra-low sulfur diesel, the type used on highways, climbed 15% to average 3.82 million barrels a day, the report showed. Heating-oil use dropped 6.7 percent to 419,000 barrels a day.
Oil Prices Weakening
Meanwhile, oil prices fell Monday on fears that the world economy will weaken and push down demand for crude.
West Texas Intermediate oil fell 75 cents to finish at $96.92 a barrel in New York. Brent crude, which is used to price oil produced in many foreign countries, fell 74 cents to end at $106.66 a barrel in London.
The global economy is under assault from several directions. The inability of Europe to deal with its crushing debt problems is raising concerns that the region will fall into recession. Also, as long as the crisis continues, the fear remains that the world financial system could seize up if European banks and banks with ties to Europe stop lending.
When the economy slows, demand for crude oil and refined products like diesel and gasoline falls because fewer goods are produced and shipped, and people travel less.
Last Thursday, oil closed above $100 per barrel for the first time since June, finishing the trading day in New York at $102.59 a barrel.
Weekly Retail On-Highway Diesel Prices
(Dollars per gallon, including all taxes)
East Coast: 3.984
New England: 4.056
Central Atlantic: 4.100
Lower Atlantic: 3.918
Gulf Coast: 3.903
Rocky Mountain: 4.144
West Coast: 4.191
Fuel and Oil: Related News
11/22/2011 – Diesel Climbs North of $4 as Oil Slips on Recurring Economic Worries
For the first time since May, the national average price of a gallon of diesel has topped the four-dollar mark….
11/17/2011 – Oil Tops $100 for First Time Since July
Oil prices hit $100 per barrel for the first time in nearly four months Wednesday as U.S. supplies dropped, and a pipeline deal promised to cut them further….
11/15/2011 – Diesel Gains a Dime while Crude Slips Close to $98
Diesel prices across the country rose over the past week to their highest average in nearly six months, the Department of Energy reported on Monday. The DOE’s weekly price survey shows diesel just shy of four dollars at $$3.987 a gallon….
11/14/2011 – Obama Delays Keystone Pipeline
The Obama Administration last week announced that it wants a more environmentally friendly route for the controversial Keystone XL oil pipeline, which will delay approval for as much as a year….
11/14/2011 – Diesel Shortages Hit Nebraska, Surrounding States
Look for continued diesel shortages in Nebraska, western Iowa, Kansas, Minnesota and the Dakotas over the next several more weeks….
11/9/2011 – EIA Lowers Economic Growth Projections, Sees Crude at $100 for 2011, 2012
The U.S. Energy Information Administration expects the U.S. average refiner acquisition cost of crude oil to remain relatively flat for the next year, averaging about $100 per barrel in 2011 and 2012….
11/8/2011 – Supreme Court Refuses to Hear Biodiesel Standard Case
The U.S. Supreme Court on Monday declined to hear a request from the oil and chemical industry to strike down the Renewable Fuel Standard (RFS). In refusing to hear the case, the Court has Affirmed EPA’s renewable fuels standard….
11/8/2011 – Oil Tops $95 on Monday, Diesel Slides Half a Cent from Last Week
Diesel prices have retreated slightly for the first time in a month, while oil prices are on the rise, pushed by higher seasonal demand and hints of stability in the eurozone….
11/4/2011 – Integer Research Offers Independent North American DEF Price Reference Service
The DEF Tracker draws on Integer’s strong position and expertise in DEF, fertilizer and chemicals market analysis and price reporting. DEF Tracker, the first report of its kind, was created in response to increasing trading activity and more frequent contract settlements in the market….
11/2/2011 – Compressed Natural Gas Fueling Stations Get Green Light in Georgia
Georgia utility regulators approved a plan developed by Atlanta Gas Light that incents the private sector to invest in Compressed Natural Gas vehicle fueling stations….
11/1/2011 – Oil Gains 18% in October, Diesel Up for Third Straight Week
The national average price of diesel rose 6.7 cents a gallon from last week, while oil prices for October leapt from about $79 to $93 per barrel during the month….
10/31/2011 – Capstone Turbine Developing Hybrid Concept Truck Program
Capstone Turbine Corporation is working with domestic heavy-duty truck manufacturers Kenworth and Peterbilt to demonstrate Class 7 and Class 8 microturbine range-extended series hybrid trucks….
10/25/2011 – Diesel up 2.4 Cents to $3.825; Oil Gains 4.4%
Diesel and crude oil made gains over the past week while gasoline prices dipped slightly, according to the Department of Energy’s weekly on-highway retail price survey….
10/18/2011 – Diesel Up 8 Cents from Last Week, Oil Drops on Euro Debt Concerns
The average price for diesel fuel at pumps across the country leapt 8 cents this week, putting the brakes on a five-week slide. Meanwhile, fears of a slowdown in the global economy and renewed uncertainty over European debt drove oil prices 42 cents lower on Monday….
10/13/2011 – NAFA Wants DOE to Rule on Hybrid Compliance Credits
NAFA Fleet Management Association wants the Department of Energy to clarify its position on the use of hybrid compliance credits. NAFA also urged the agency to proceed with a pending rulemaking covering the use of such credits….
10/12/2011 – Diesel Drops 2.8 cents Over the Past Week; Oil Prices Stabilize
Diesel prices continued their week over week decline, dropping nearly three cents from last week’s national average price. The national average price for diesel was $3.721 per gallon, down 2.8 cents from last week. …