National diesel average increases for the 13th consecutive week, reports EIA

The national average price per gallon of diesel gasoline headed up for the 12th consecutive week, for the week of January 25, according to data issued this week by the Department of Energy’s Energy Information Administration (EIA).

The national average—at 2.738—headed up 2.2 cents, 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 35.5 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 21.8 cents, 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 is currently trading at $55.01 per barrel 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.”