Weekly Fuel Report -- Fuels Turn Bearish

March 26, 2013 11:22 AM
 

National gasoline prices fell $0.016 to a national average of $3.680 during the report week. Farm diesel pricing mostly stayed put and highway diesel moved lower across the board for the second consecutive week.

Farm Diesel -- bigbearlilgirl

Farm diesel moved six cents lower in the Inputs Monitor Regional Index last week to $3.56. Six states were unchanged and six states saw farm diesel pricing decrease signaling upside action may have played itself out for the time being.

The greatest decline was in Illinois where the price plummeted $0.33 cents to $3.49/gallon -- if you fear a demand spike, now may be a good time to top off in Illinois -- but the lowest priced farm diesel in the Midwest was observed in Missouri for the second straight week at $3.43/gallon -- down three cents from last week.

Look for farm diesel pricing to continue to edge lower as distillate fuel for home heat and power generation garner less of the production supply. We expect farm diesel to move in the opposite direction of temperatures as evidenced in the table below. But along with melting snow, warmer spring temps could spur immediate demand to fuel iron in the field, inflating prices in the short-term. Beyond that potential, farm diesel looks very bearish.

Farm Diesel 3/12/13
Three Weeks Ago
Previous Week
Current Week
Change
Iowa
$3.62
$3.61
$3.48
-$0.13
Illinois
$3.82
$3.82
$3.49
-$0.33
Indiana
$3.69
$3.76
$3.76
unchanged
Wisconsin
$3.66
$3.66
$3.56
-$0.10
Minnesota
$3.65
$3.61
$3.58
-$0.03
South Dakota
$3.68
$3.67
$3.67
unchanged
North Dakota
$3.67
$3.66
$3.66
unchanged
Nebraska
$3.50
$3.47
$3.47
unchanged
Missouri
$3.61
$3.46
$3.43
-$0.03
Kansas
$3.48
$3.48
$3.48
unchanged
Ohio
$3.57
$3.57
$3.57
unchanged
Michigan
$3.79
$3.78
$3.65

-$0.13

Midwest Average
$3.64
$3.62
$3.56
-$0.06

Gasoline-

Average national retail price for regular gasoline fell $0.016 to $3.680 per gallon -- $0.238 below year-ago prices.

East Coast gasoline down $0.030 to $3.660; Midwest posted the only upward motion for the second consecutive week, adding $0.012 to $3.657; Gulf Coast $0.017 lower to $3.505; Rocky Mountain gasoline unchanged again this week at $3.469 for the third consecutive week, and the West Coast posts a $0.045 decline to $3.962.

Highway Diesel --

National average price for highway diesel $0.041 lower nationwide, ending the report week at $4.006 -- $0.141 below year-ago.

East Coast $0.032 lower to $4.050; Midwest highway diesel down $0.036 to $3.979; Gulf Coast $0.054 lower to $3.935; Rocky Mountain regional diesel falls $0.036 to $3.935, and West coast regional diesel down $0.061 to end the week at $4.101.


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