Gasoline and Diesel Weekly: Fuels In Focus as WTI Softens

October 21, 2013 07:53 AM
 

  • Farm Diesel softens 3 1/2 cents to an average of $3.465/gallon.
  • Retail Gasoline softens 5 cents to a 12 state average of $3.32/gallon.
  • Highway Diesel fuel softens 1/2 cent to a 12 state average of $3.86 3/4/gallon.

 

At the open the WTI/Brent crude oil spread widened to $9.39 with Brent opening at $110.02 and WTI at $100.63. Increasing U.S. inventories and increased OPEC production have the spread widening and as Libyan production resumes, global sendout volumes increased for Brent, pressuring WTI lower. blizzard l

Be Advised -- Though the response has been a move lower for near month natural gas, we expect declines in WTI to signal increased upside risk for natural gas spot pricing. This will also mean price hikes for LP. Currently (noon CT), natgas is testing support at $3.71. A failure to break through that level would suggest upside risk to $3.76. We look for falling temperatures to buttress natural gas pricing in the near-term.

A weather event -- like the one suggested for the central plains this week -- would excite demand for home heat, and as citizens turn up the thermostat, seasonal demand will likely push natgas pricing higher.

Farm Diesel --

Farm diesel moved 3 1/2 cents lower this week to a regionwide average of $3.495 with half of the 12 states in our Index unchanged. The biggest move was a 15 cent decrease in Missouri to $3.44. North Dakota fell 12 cents to $3.54 leaving Illinois at the top end at $3.57/gallon.

No states posted increases during the report week. Fresh data from EIA this week will lend insight into the current state of crude oil and distillate inventories. Look for that later this week in our weekly Petroleum Report on Wednesday.

Farm Diesel 10/21/13
Three Weeks Ago
Previous Week
Current Week
Change
Iowa
$3.43
$3.42
$3.41
-$0.01
Illinois
$3.57
$3.57
$3.57
unchanged
Indiana
$3.58
$3.56
$3.50
-$0.06
Wisconsin
not reported
$3.56
$3.56
unchanged
Minnesota
$3.48
$3.49
$3.49
unchanged
South Dakota
$3.56
$3.42
$3.38
-$0.04
North Dakota
$3.65
$3.66
$3.54
-$0.12
Nebraska
$3.37
$3.35
$3.35
unchanged
Missouri
$3.63
$3.59
$3.44
-$0.15
Kansas
$3.52
$3.33
$3.33
unchanged
Ohio
$3.49
$3.49
$3.49
unchanged
Michigan
$3.59
$3.57
$3.53
-$0.04
Midwest Average
$3.533
$3.50
$3.465
-$0.03 1/2

 

Gasoline-

The retail price for regular gasoline softened a nickel during the report week to a Midwest average of $3.32 1/4. The high mark was posted in Michigan at $3.45/gallon with the low recorded in Missouri at $3.05 1/4.

Highway Diesel --

The national average price of highway diesel fell 1/2 cent to a Midwest average of $3.86 3/4. The top of our range here was noted in North Dakota at $3.962 with the low posted in Missouri at $3.66 1/4/gallon.


Photo credit: melolou / Foter / CC BY-NC-ND

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