Diesel Jumps 2.5¢ to $2.407
The U.S. retail diesel average climbed 2.5 cents to $2.407, the Department of Energy said, increasing for the 15th time in 16 weeks as crude oil flirted with $50 per barrel.
However, trucking’s main fuel remained 47.7 cents cheaper than a year ago when the price was $2.884.
Diesel prices climbed in all regions, DOE said after its June 6 survey of fueling stations.
Also last week, the national average price for regular gasoline climbed 4.2 cents to $2.381 a gallon, DOE’s Energy Information Administration said.
Gas prices rose in all regions except the Central Atlantic and Rocky Mountain regions, but the average remained 39.9 cents cheaper than a year ago, EIA said.
Crude oil futures on the New York Mercantile Exchange closed June 6 at $49.71, compared with $59.13 last year on June 5.
After the Organization of Petroleum Exporting Countries’ June 2 summit, ministers emerged from the gathering voicing unity and continuing a policy of no production limits. U.S. data released the same day [the latest available] showed oil supplies are dropping, a sign that the supply glut that sent prices plummeting this year is finally dissipating, Bloomberg News reported.
“It’s very clear that OPEC is less relevant than U.S. production data,” said Rob Thummel, a managing director and portfolio manager at Tortoise Capital Advisors, who helps oversee $14.1 billion. “We’re going to trade near $50, plus or minus five bucks, for quite a while,” though higher prices are inevitable, he said in a phone interview with Bloomberg.
The oilfield services company Baker Hughes Inc. reported the U.S. added four more drilling rigs as of June 3 for a total of 408, down by 460 compared with a year earlier.
Canada saw its rig count fall by 2, and was down 75 compared with a year earlier.
