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Diesel Moves Higher, Passes $2.94 Per Gallon

The national average cost of on-highway diesel has posted its fifth weekly increase but prices have started to moderate a little in some parts of the country, according to new U.S. Energy Department figures.

Evan Lockridge
Evan LockridgeFormer Business Contributing Editor
Read Evan's Posts
March 9, 2015
Diesel Moves Higher, Passes $2.94 Per Gallon

 

2 min to read


The national average cost of on-highway diesel has posted its fifth weekly increase but prices have started to moderate a little in some parts of the country, according to new U.S. Energy Department figures.

It has gained 0.8 cent over the past week, hitting $2.944 per gallon, its highest price since Jan. 12, following steep declines that began last summer with it hitting a five-year low last month. Compared to this week in 2014 the price is down by nearly $1.08 per gallon.

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Regionally, average prices fell by 0.1 cent in the Gulf Coast states to $2.795 per gallon, the least expensive price in the country, along with declining by the same amount in the West Coast region at $3.096 per gallon. Prices fell slightly more in the West Coast region, minus California, 0.8 cent to $2.926.

In all other sections of the country prices increased from between 0.2 cent in the Midwest, hitting $2.852 per gallon, to 4.1 cents in New England at $3.332 per gallon, the second most expensive section in the country. The Central Atlantic region was the most expensive at $3.33, up 4 cents over the past week.

As for regular-grade gasoline, it increased far less than its double-digit hike a week earlier, adding 1.4 cents, for a national average of $2.487, its sixth straight weekly increase. Compared to a year ago it is $1.025 less.

Gasoline prices increased in all regions but the Midwest, where it fell 3.9 cents to $2.339. It ranges from a low of $2.228 in the Gulf Coast region to a high of $3.182 in the West Coast region.

Meantime, crude oil prices drifted higher on Monday by 39 cents at the close of trading in New York, settling at $50 per barrel after being as high as more than $52 at one point last week.

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Compared to last Tuesday’s opening price Monday’s level at the market close is only 20 cents higher and it posted its third weekly decline in a row last week, while overseas crude fell 4.6% last week, it’s biggest weekly loss in nearly two months.

This came as the investment firm Goldman Sachs said in a note to investors it expects oil to reverse recent gains it has made since its plunge of more than 50% from last summer. It believes the black gold will drop back to $40 per barrel due to rising global inventories of crude.

Also helping to push oil back down has been a rise in the value of the dollar against major foreign currencies, making it less of an attractive buy for overseas investors.

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