National diesel average increases for the 14th consecutive week, reports EIA

Diesel prices continued an impressive run of gains this week, with the Department of Energy’s Energy Information Administration (EIA) reporting that the national average price per gallon increased for the 14th consecutive week, for the week of February 8.

This week’s national average—at $2.801—headed up 6.3 cents, marking the highest weekly gain, going back to a5.8-cent increase, to $2.383, for the week ending November 9. What’s more, this week’s average represents the single highest national average since the week of March 9, when it came in at $2.814.

The 6.3-cent gain, for the week of February 8, was preceded by a 2.2-cent gain, to $2.738, following recent gains of: $0.02 cents, to $2.716, for the week of January 25; 2.6 cents, to $2.696, for the week of January 18; $0.03 cents, to $2.670, for the week of January 11; a 0.005-cent increase, to $2.64, for the week of January 4; a 1.6-cent increase, to $2.635, for the week of December 28; a $.06-cent increase, to $2.619, for the week of December 21; and a 3.3-cent increase, to $2.559, for the week of $2.559.

Going back to the week of November 9, which kicked off this 13-week stretch of increases, the national average has headed up a cumulative 41.8 cents. And the national average has been below the $3 per gallon mark since the week of February 2, when it posted an average of $2.956.

On an annual basis, this week’s national average is down 10.9 cents, well below the annual spread of 21.8 cents, for the week ending February 1 and also below the annual spreads of 29.4 cents and 34.1 cents, for the weeks ending January 25 and January 18, respectively.

West Texas Intermediate Crude oil is currently trading at $57.67 on the New York Mercantile Exchange.

In tandem with the increases in diesel and oil prices are rig counts, which, while very weak at the moment, are restricting inventory levels and driving prices up, according to Tim Fiore, Chair of the ISM's Manufacturing Business Survey Committee.

“That is not really a growth profile, as you really want consumption and gallons per month going up and get the refineries operating again to the extent that they should be,” he explained. “Right now, they are restricting inventory, and that is driving the prices up. I don’t see oil and gas really coming back until people start commuting to work again, and business and leisure travel really come back. That is not until 2022. Maybe there will be an uptick in commuting in the fourth quarter.”