The U.S. average for diesel fuel slid below the $5-per-gallon mark for the week of Sept. 19, marking the continuation of almost three months of declines, except for an anomalous surge three weeks ago, according to the U.S. Energy Information Administration (EIA).
Trucking’s main fuel was down 6.9 cents nationwide for the week of Sept. 19 to $4.964 per gallon, its first trip below the $5 mark since Aug. 22 and the week before the weekly average spiked 20.6 cents.
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Diesel has been trending downward since it set a record of $5.81 per gallon the week of June 20. The nationwide average, even after those months of mostly uninterrupted declines, is still $1.579 more expensive than it was a year ago, according to EIA.
Diesel is down below $5 now in every region (in some regions, significantly below) of the U.S., except the West Coast, where truckers there have seen the fuel decline steadily in recent weeks. The fuel also declined in every region of the U.S. for the week of Sept. 19.
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Diesel is the lowest on the Gulf Coast, where it was down 7 cents for the week to $4.69 per gallon. It was down on the East Coast to $4.889, a 6-cent decrease, and in the Rocky Mountain region, the fuel stood at $4.932, down 2.9 cents. It was down 9 cents in the Midwest to $4.995. On the most-expensive West Coast, diesel declined 4.6 cents to $5.612 per gallon.
Lower crude prices drive distillate declines
The drivers of lower diesel and gasoline prices appear to be mainly crude oil prices that have fallen but also demand that is flattening.
West Texas Intermediate crude was up slightly but still around the $85-per-barrel mark, a far cry from prices well above $100 a few months ago. Brent is down less but still well below $100 at $92 per barrel. Crude prices are down $30 since a peak in early June.
According to one analyst, fears of an economic slowdown are putting a cap on crude prices, also reflecting fears of a lull in China as well as a recession in the U.S.