- Farm Diesel softens 2 cents to an average of $3.345 per gallon.
- Retail Gasoline firmed 6 cents to a national average of $3.331 per gallon.
- Highway Diesel fuel firms 3 cents to $3.903 per gallon.
At the open the WTI/Brent crude oil spread narrowed 67 cents to $12.21 with Feb 14 Brent opening at $112.36 -- up $3.33 from the previous report -- and Feb 14 WTI crude at $100.15 -- $3.60 higher than the previous report week.
Speculation regarding an economic recovery in the United States has industry watchers optimistic regarding demand growth, however, strength in the U.S. dollar would limit prospects for global sales of U.S. crude. Meanwhile, U.S. crude supplies fell 4.7 million barrels during the week ended Dec. 20 according to EIA and despite lackluster activity from traders, the declining storage news urged WTI futures higher.
Wholesale gasoline prices softened over the week by $1.75 to $2.792 on strong supplies and tepid demand suggesting lower gasoline pricing on the other side of the holidays. Heating oil prices also fell to just above $3.00/gallon and will work to pressure farm diesel pricing lower near-term.
Farm Diesel --
Farm diesel moved 2 cents lower this week to a regionwide average of $3.34 with half of the 12 states in our index unchanged. The biggest move was a 12 cent decline in Indiana to $2.78 with Missouri not far behind, softening 11 cents of its own to $3.33. Other moves were within three cents. Only Michigan moved higher adding a penny to $3.50.
In an unexpected reversal, the price of LP in Indiana is currently above the price of farm diesel. This is a combination of very low farm diesel prices and very high LP prices. We generally see LP pricing around half of what a gallon of farm diesel costs, but this week, Indiana reports farm diesel at $2.78 and LP at $3.17. Strong late season demand for dryer fuels along with bitterly cold weather will limit downside potential for LP in Indiana and the rest of the Corn Belt in the near-term.
The regionwide low is $2.78 in Indiana with the Dakotas sharing the top spot at $3.55/gallon.
| Farm Diesel 12/30/13 | Three Weeks Ago | Previous Week | Current Week | Change |
| Iowa | $3.32 | $3.32 | $3.32 | Unchanged |
| Illinois | $3.50 | $3.50 | $3.50 | Unchanged |
| Indiana | $3.52 | $2.90 | $2.78 | -$0.12 |
| Wisconsin | $3.26 | $3.26 | $3.26 | Unchanged |
| Minnesota | $3.45 | $3.43 | $3.40 | -$0.03 |
| South Dakota | $3.50 | $3.55 | $3.55 | Unchanged |
| North Dakota | $3.54 | $3.55 | $3.55 | Unchanged |
| Nebraska | $3.33 | $3.33 | $3.32 | -$0.01 |
| Missouri | $3.44 | $3.44 | $3.33 | -$0.11 |
| Kansas | $3.39 | $3.39 | $3.37 | -$0.02 |
| Ohio | $3.37 | $3.26 | $3.26 | Unchanged |
| Michigan | $3.51 | $3.49 | $3.50 | +$0.01 |
| Midwest Average | $3.42 | $3.36 | $3.34 | -2 cents |
Gasoline-
The retail price for regular gasoline firmed 6 cents during the report week to a national average of $3.331 -- now 3 1/4 cents above year-ago. The East Coast firmed 3 1/4 cents to $3.413; Midwest retail gasoline firmed 10 1/2 cents this week to $3.264/gallon; Gulf Coast up 5 3/4 cents to $3.117; Rocky Mountain region up 4 1/2 cents to $3.100 and the West Coast firmed 4 1/4 cents to $3.526, according to EIA data.
Highway Diesel --
The national average price of highway diesel firmed 3 cents to a national average of $3.903 -- 1 1/2 cents below year-ago. East Coast 2 1/2 cents higher to $3.943/gallon; Midwest 4 cents higher to $3.887; Gulf Coast highway diesel up 1 3/4 cent to $3.789; Rocky Mountain region up 3 1/2 cents to $3.889 and the West Coast firmed a nickel to $4.025/gallon, according to EIA.
