Fuels in Focus: Crude Spread Widens as Fuels Fall

November 4, 2013 09:54 AM
 

 

  • Farm Diesel softens 1/4 cent to an average of $3.447 per gallon.
  • Retail Gasoline softens 3 cents to $3.265 per gallon.
  • Highway Diesel fuel softens 1 1/4 cents to $3.857 per gallon.

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At the open the WTI/Brent crude oil spread widened $2.16 to 11.45 with Brent opening at $105.97 and WTI at $94.52. Crude oil stocks are currently high in the U.S. and with global tensions generally easing, prices should remain at the low end of the range near-term. The expectation for cheaper gasoline by Christmas is still out there and areas close to home here are already looking at ethanol with a two dollar handle.

Be Advised -- Nine states are now under an Hours of Service Waiver allowing LP drivers to extend hours on the road. These include Indiana, Minnesota, North Dakota, South Dakota, Iowa, Illinois, Montana, Nebraska and Wisconsin. There may still be time to get ahead of delivery delays if you act now. Click here to view last Thursday's LP alert...

Meanwhile, the week's forecast calls for chances of wet weather through the center of the nation with possible snow at the northern fringes. North Dakota looks like it may miss the whole shooting match, but South Dakota, Nebraska and Kansas could see some showers moving through to parts east later in the week. Precipitation this week would increase demand for LP which is already above what suppliers can keep up with. Delivery delays are expected through Thanksgiving in some parts.

Farm Diesel --

Farm diesel moved 1/4 cent lower this week to a regionwide average of $3.447 with 8 of the 12 states in our Index unchanged. The biggest move was an 8 cent fall in Iowa to $3.35. Minnesota fell 6 cents to $3.43, Nebraska shucked 4 cents to $3.51 and North Dakota softening 2 cents to $3.55. The highest priced highway diesel in our survey is at $3.59/gallon in the state of Illinois.

Farm Diesel 11/4/13
Three Weeks Ago
Previous Week
Current Week
Change
Iowa
$3.41
$3.43
$3.35
-$0.08
Illinois
$3.57
$3.59
$3.59
unchanged
Indiana
$3.50
$3.49
$3.49
unchanged
Wisconsin
$3.56
$3.53
$3.53
unchanged
Minnesota
$3.49
$3.49
$3.43
-$0.06
South Dakota
$3.38
$3.40
$3.40
unchanged
North Dakota
$3.54
$3.57
$3.55
-$0.02
Nebraska
$3.35
$3.55
$3.51
-$0.04
Missouri
$3.44
$3.34
$3.34
unchanged
Kansas
$3.33
$3.35
$3.35
unchanged
Ohio
$3.49
$3.37
$3.37
unchanged
Michigan
$3.53
$3.46
$3.46
unchanged
Midwest Average
$3.465
$3.449
$3.447
-1/4 cent

 

Gasoline-

The retail price for regular gasoline softened 2 3/4 cents during the report week to a national average of $3.265 -- 22 3/4 cents below year-ago. The East Coast shucked 3 cents to $3.289; Midwest retail gasoline down a dime to $3.188/gallon; Gulf Coast down 4 1/2 to $3.030; Rocky Mountain region down 6 1/4 to $3.307 and the West Coast moved 4 1/2 lower to $3.564, according to EIA data.

Highway Diesel --

The national average price of highway diesel fell 1 1/4 cents to a Midwest average of $3.857 -- 15 1/4 cents below year-ago. All locations reporting diesel prices softened on the week. East Coast 1 1/4 lower to $3.878/gallon; Midwest also 1 1/4 lower to $3.826; Gulf Coast highway diesel down 1 1/2 to $3.7869; Rocky Mountain region down 3/4 cent to $3.857 and the West Coast dropped 2 1/4 cents to $4.015/gallon, according to EIA.


Highway fuel data credit: EIA.

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