Gasoline and Diesel Weekly: Fuels Roll Lower

October 14, 2013 08:37 AM
 

  • Farm Diesel softens 3 1/4 cents to an average of $3.50/gallon.
  • Retail Gasoline softens 5 cents to a 12 state average of $3.316/gallon.
  • Highway Diesel fuel softens 2 1/2 cents to a 12 state average of $3.873/gallon.

 

The rising spread between Brent and WTI crude contracts is sending fuel prices lower as U.S. inventories of crude oil build. Demand for highway fuels is in notable decline as more fuel efficient vehicles limit use. Crude production that had been stalled for months in Libya has resumed and as tensions in Syria ease, WTI looks to break away as far from Brent as it can.

Farm Diesel -- crudebox

Farm diesel moved 3 3/4 cents lower this week to a regionwide average of $3.495 with just two of the 12 states in our Index unchanged. The biggest move was an 19 cent decrease in Kansas to $3.33 leaving North Dakota with the highest priced farm diesel in our survey at $3.66 -- up a penny on the week.

Wisconsin pops back up on our radar at $3.56/gallon after data had been interrupted.

The only other increase was in Minnesota which added 1 cent to $3.49.

Other declines included penny dips in Nebraska to our regionwide low of $3.37, and in North Dakota. The early part of this fall has been warmer than the year before and the declines in #2 diesel pricing reflect weak demand for home heat. That weak demand plus sideways movement in WTI pricing limit upside potential.

Farm Diesel 10/14/13
Three Weeks Ago
Previous Week
Current Week
Change
Iowa
$3.43
$3.43
$3.42
-$0.01
Illinois
$3.57
$3.57
$3.57
unchanged
Indiana
$3.58
$3.58
$3.56
-$0.02
Wisconsin
not reported
not reported
$3.56
NA
Minnesota
$3.46
$3.48
$3.49
+$0.01
South Dakota
$3.67
$3.56
$3.42
-$0.14
North Dakota
$3.66
$3.65
$3.66
+$0.01
Nebraska
$3.38
$3.37
$3.35
-$0.02
Missouri
$3.63
$3.63
$3.59
-$0.04
Kansas
$3.52
$3.52
$3.33
-$0.19
Ohio
$3.49
$3.49
$3.49
unchanged
Michigan
$3.59
$3.59
$3.57
-$0.01
Midwest Average
$3.543
$3.533
$3.50
-$0.033

 

Note -- The U.S. Energy Information Administration has been our source for this weekly update, but Friday, your Editor received word that EIA will join USDA and a host of other government agencies in temporary shutdown. This has forced us to seek fuel pricing elsewhere, and the result of our search is improved accuracy in Midwest fuel pricing. The following gasoline and highway diesel prices are an average drawn from each of the 12 Monitor states based on this morning's spot pricing.

Gasoline-

The retail price for regular gasoline softened a nickel during the report week to a Midwest average of $3.50. The high mark was posted in Illinois at $3.440/gallon with the low recorded in Missouri at $3.038.

Highway Diesel --

The national average price of highway diesel fell 2 1/2 cents to a Midwest average of $3.873. The top of our range here was noted in Michigan at $3.965 with the low posted in Missouri at $3.67/gallon.


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