After Respite, Diesel Rises Again
After a one-week respite, the price of diesel fuel resumed its rise last week, reaching $1.234 a gallon, and investment analysts are citing fuel costs as a reason to lower their earnings estimates for freight carriers.
The 0.8-cent increase came after the national average price, as reported by the Energy Information Administration, remained at $1.226 a gallon for two weeks ending a streak of 16 weeks in which the national average increased, dating back to June 7.
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“We suspect that for the third or fourth quarter, and possibly for next year, our estimates may be too high for the truckload carriers,” Donald Broughton, a transportation analyst for A.G. Edwards & Sons, wrote in a report that said the company was lowering its estimates for almost all truckload companies.
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The Oct. 4 price represented the highest since March 3, 1997. Since then, diesel prices fell through 1997 and 1998, reaching a low of 95.3 cents in February 1999.
