Fuels in Focus: Diesel Fuels Higher as Gasoline Slides

December 2, 2013 10:40 AM
 

 

  • Farm Diesel firms 2 cents to an average of $3.395 per gallon.
  • Retail Gasoline softened 2 cents to a national average of $3.272 per gallon.
  • Highway Diesel fuel firms 4 cents to $3.883 per gallon.

 

At the open the WTI/Brent crude oil spread widened 44 cents to 17.04 with Jan 14 Brent opening at $109.75 -- down $1.06 on the week -- and WTI at $92.71 -- $1.50 lower than the same time last week.

Warmer weather across the United States later this week will help limit demand for home heat, but seasonally, farm diesel is about due to run higher. This week's 2 cent increase raises eyebrows, and we believe a harvest low may finally be in place for farm diesel. We are willing to hold until next week as the coming warm-up may pressure farm diesel lower for one more week.

We may look to extend spring coverage on farm diesel next week if prices show signs of turning around. If your state wears a $3.20 handle, consider topping off at current prices and definitely prepare to cover some spring diesel if prices bounce in the coming week or two. Contact your preferred retailer as prices may vary.

Farm Diesel --

Farm diesel moved 2 cents higher this week to a regionwide average of $3.395 with 5 of the 12 states in our Index unchanged. The biggest move was a 7 cent increase in Nebraska to $3.28. Minnesota firmed 6 cents to $3.39 and Kansas firmed 5 cents to $3.37. Declines were limited with Missouri dropping a nickel to $3.32.

Farm Diesel 12/2/13
Three Weeks Ago
Previous Week
Current Week
Change
Iowa
$3.36
$3.29
$3.31
+$0.02
Illinois
$3.59
$3.50
$3.50
Unchanged
Indiana
$3.53
$3.53
$3.52
-$0.01
Wisconsin
$3.51
$3.26
$3.26
Unchanged
Minnesota
$3.35
$3.33
$3.39
+$0.06
South Dakota
$3.25
$3.40
$3.40
Unchanged
North Dakota
$3.46
$3.54
$3.54
Unchanged
Nebraska
$3.22
$3.21
$3.28
+$0.07
Missouri
$3.31
$3.27
$3.32
-$0.05
Kansas
$3.40
$3.32
$3.37
+$0.05
Ohio
$3.37
$3.37
$3.37
Unchanged
Michigan
$3.48
$3.49
$3.48
-$0.01
Midwest Average
$3.402
$3.375
$3.395
+2 cents

 

Gasoline-

The retail price for regular gasoline softened 2 cents during the report week to a national average of $3.272 -- now just two cents below year-ago. The East Coast firmed 1/2 cent to $3.389; Midwest retail gasoline fell 7 cents this week to $3.121/gallon; Gulf Coast down 1 1/2 cents to $3.124; Rocky Mountain region down 3 1/4 cents to $3.113 and the West Coast firmed 1 3/4 cents to $3.475, according to EIA data.

Highway Diesel --

The national average price of highway diesel firmed 4 cents to a national average of $3.883 -- 14 1/2 cents below year-ago. All locations reporting diesel prices firmed on the week. East Coast 3 1/2 cents higher to $3.906/gallon; Midwest 5 cents higher to $3.879; Gulf Coast highway diesel up 2 1/2 cents to $3.780; Rocky Mountain region adding 2 cents at $3.858 and the West Coast up 4 1/2 cents at $3.998/gallon, according to EIA.


Highway fuel data credit: EIA.

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