Supply May Outweigh Price In Concerns About Fuel
The price of diesel fuel rose 1.8 cents last week, the third consecutive increase — and a trucking industry analyst said strong demand for distillates will force further increases regardless of the weather.
The supply of crude oil is adequate right now, said Martin Labbe, of Martin Labbe & Associates. But any failure of refinery capacity could jeopardize the supply of distillate fuels such as heating oil and diesel fuel.
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The $1.645 per gallon price, as reported by the Energy Information Administration Nov. 27, was 34.1 cents higher than the corresponding week in 1999.
Meanwhile, the price of crude oil rose in response to vague Iraqi threats of a disruption in exports even though Saudi Arabia pledged to compensate for any shortages.
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