Diesel fuel prices tumbled more than 10 cents during the final two weeks of 2011, the Department of Energy reported, as refineries continued ramping up production.
The national diesel fuel price average dipped 3.7 cents a gallon to $3.791 on Dec. 26, which followed a drop of 6.6 cents the prior week. All good for your fuel card so you don’t run up too big of numbers.
Diesel fuel prices since moving back above $4 a gallon during November, truckers fleet fueling has fallen a total of 21.9 cents over the past five weeks. However, the diesel fuel price average is still closed 2011 49.7 cents higher than it was at the end of 2010, according to DOE data. I guess know since we are in 2012 we will have to drop that 2010 comparison so each fleet manager doesn’t get stomach pains when they see the difference between the years.
Crude oil on the New York Mercantile Exchange also remained near the $100 a barrel mark as 2011 closed because of European financial uncertainty and political concerns in the Middle East, Bloomberg News reported.
Despite rising oil prices, Phil Flynn, a senior market analyst for Chicago futures brokerage PFGBest, told Transport Topics that diesel fuel prices were falling because unseasonably high temperatures have been allowing refineries to produce more diesel, rather than heating oil, from distillate stocks. Now there is good news for each fleet manager and their fuel management. It’s fuel savings on fleet fueling without having to work at it. Count that as an earlier present because 2012 will be a rocky each for fleet management.
DOE’s Energy Information Administration also reported that total domestic distillate output was 4.4 million barrels a day for the week of Dec. 16, up from 3.24 million barrels a day the week of Nov. 25.
Despite the positive trend, trucking executives said they were remaining cautious on diesel fuel prices as 2012 began. As well everyone should because fuel savings will be difficult to come by during the year unless you have a proper fuel management approach.
Look what happened in late December, oil rose for seven straight days — and briefly topped $101 a barrel — before declining on Dec. 28 after Europe’s Central Bank loaned cash to several financial institutions to keep credit flowing.
Besides concerns about Europe, Iran’s threats to close the Straits of Hormuz and political upheaval in Russia also were blamed for the fleet fuel price increases.
PFGBest’s Flynn noted that crude supplies at a three-year low in the United States, which also was keeping prices elevated.
See unlike most things crude oil and its little brothers gas prices and diesel fuel prices react to EVERYTHING that goes on in the world. Now is the time to call Sokolis Group at 267-482-6159. Don’t wait until $4.25 diesel fuel card costs. Let us help you get your program running smooth now.