National diesel average falls more than 10 cents, for the second straight week, reports EIA
The national average price per gallon for diesel gasoline saw a significant decline for the week of July 11, in tandem with recent declines in oil prices, according to data recently issued by the Department of Energy’s Energy Information Administration (EIA).
The national average—at $5.568—fell 10.7 cents below the week of July 4, which came in at $5.675. And that decline was in line with a 10.8-cent decline, from the week of June 27, which was at $5.783. The decline from the week of June 20—at $5.81—to the week of June 27, was less significant, down 2.7 cents.
Compared to the same week a year ago, this week’s diesel average is up $2.23.
West Texas Intermediate Crude oil is currently trading at $96.41 per barrel on the New York Mercantile Exchange, well below $120 per barrel roughly a month ago.
A New York Times report observed that the price of crude fell more than 7% yesterday, with American and world benchmarks less than $100 per barrel. As for the drivers of these declines, the report explained that the “Chinese economic outlook, dimmed by lockdowns to contain Covid-19 outbreaks, appeared to be the major cause of the decline, along with increasing signs of a global economic slowdown,” adding that China is the world’s leading oil importer, and the second-largest consumer after the United States.
Shippers coping with record-high fuel surcharges are advised by diesel supply experts to simply bear with it until more (and cheaper) crude oil is available, perhaps later this year but probably not until 2023.
Diesel prices will probably remain high longer than gasoline prices because diesel inventories have fallen to multiyear lows, according to Gas Buddy, an online fuel forum.
