From Logistics Management:
The price per gallon of diesel fuel dropped at its steepest level in nearly five months, according to data from the Department of Energy’s Energy Information Administration (EIA).
Declining 5.3 cents to $4.004 per gallon, this falls short of a 6.6 cent decrease to $3.828 per gallon during the week of December 19.
Diesel prices have been falling for five consecutive weeks, during which time prices have dropped a cumulative 14.4 cents. But even with these declines, prices have been above the $4 per gallon mark for 12 straight weeks, since hitting $4.051 per gallon the week of February 27.
Industry insiders however, believe prices will trend higher:
A conference call hosted by Stifel Nicolaus last month, which featured Tom O’Brien CEO, TravelCenters of America and Petro Stopping Centers and Mark Hazelwood Executive Vice President, Pilot Flying J Travel, noted that “diesel fuel price will trend higher, perhaps more quickly and with more volatility than oil prices, as diesel is in great demand around the world,” adding that [t]he demand for highway diesel fuel in the U.S. has dropped by 25%+ since 2007 due to a variety of factors.”
