The price of a gallon of diesel fuel is up by 3.9 cents this week, topping $3.57 a gallon, and marking its 12th consecutive weekly increase.
In its weekly filling station survey released on Tuesday, the Department of Energy indicated diesel fuel hit a national average price of $3.573 -- its highest national average price since Oct. 2008, when it hit $3.65 a gallon.
The fuel price increase comes as crude oil futures near the $100-mark, driven by the "fear factor" as unrest spreads and worsens in North Africa. Benchmark West Texas Intermediate for April delivery jumped $5.71, or 6.4 percent, to settle at $95.42 per barrel on the New York Mercantile Exchange on Tuesday. Oil hasn't been that high since it hit $97.92 on Oct. 1, 2008, Reuters reports.
Oil prices had a period of relative calm after troubles in Egypt appeared to settle, but soared again as Libyan leader Moammar Gadhafi came under attack in Tripoli. Gahhafi has urged his supporters to attack protesters who are challenging his 42-year rule. While only a small part of Libya's oil production appears to be affected, analysts fear that similar revolts could spread to other OPEC countries like Iran.
Any production losses in Libya could be quickly absorbed by other countries like Saudi Arabia.
The official Saudi Press Agency quoted Saudi Arabia's oil minister, Ali Naimi, as saying that production losses in Libya could be offset by countries like Saudi Arabia. Saudi's production capacity of 12.5 million barrels per day can help "compensate for any shortage in international supplies." Saudi Arabia currently produces around 8 million barrels per day, Bloomberg reports.
The International Energy Agency said in a statement on its website that it is ready "to make oil available to the market in the event of a major supply disruption." The Wall Street Journal reports that the IEA plans to meet this week to discuss the possible release of strategic stockpiles, if necessary.
Energy consultant Jim Ritterbusch was quoted saying a "fear premium" has added about $10 per barrel to the price of oil. That means prices could tumble once the region settles down. "But that doesn't look like it's going to happen anytime soon, he said."
The price of gasoline hasn't escaped oil's current uncertainty. DOE reported gas pricess around the country were up nearly 5 cents from last week, hitting $3.19 a gallon.
Average Canadian retail diesel pricess in Canada stood at $1.18 per liter in Tuesday, according to M.J. Ervin's weekly survey of Canadian energy prices. That's the equivalent of $4.46 per U.S. gallon, before currency exchange.
DOE Weekly Retail On-Highway Diesel Prices
(Dollars per gallon, including all taxes)
U.S. 3.573 Last week: +0.039 Last year: +0.741
East Coast: 3.620 Last week: +0.033 Last year: +0.743
New England: 3.769 Last week: +0.020 Last year: +0.758
Central Atlantic: 3.734 Last week: +0.034 Last year: +0.767
Lower Atlantic: 3.557 Last week: +0.033 Last year: +0.731
Midwest: 3.517 Last week: +0.038 Last year: +0.723
Gulf Coast: 3.522 Last week: +0.033 Last year: +0.729
Rocky Mountain: 3.568 Last week: +0.057 Last year: +0.741
West Coast: 3.729 Last week: +0.058 Last year: +0.811
California: 3.799 Last week: +0.052 Last year: +0.819
