Diesel Prices Plummet Further
Since the European Union and the United States have uplifted sanctions against Iran, there has been a major dip in fuel prices. Following this move, Iran is now expected to export an additional 500,000 barrels a day. A surge in the US oil production is cited to be another major reason for the plummeting oil prices. Analysts say that prices may fall to as much as $10 a barrel before rising back up again.
According to the latest weekly report by US Energy Information Administration (EIA), the diesel prices as released on January 25 stand at $2.071, 4.1 cents down since the last week and 79.5 cents down in comparison with the last year’s price.
Gulf Coast hands out the cheapest fuel at $1.957 a gallon followed by Midwest where it’s a mere 3 cents higher at $1.987. The Rocky Mountains region has witnessed the most significant decline in prices, 6.3 cents down from last week currently standing at $2,015 per gallon, followed by Gulf Coast where it’s 5.7 cents down from last week’s $2.014. The most expensive fuel can be found in California at $2.459 followed by Central Atlantic at $2.264. It’s important to note here that the diesel has not touched the $3 a gallon mark since January last year, and it is the first time that the diesel prices have dropped below $2.10 threshold after March 2013.
Since mid 2014, the prices have already dropped by 75 percent in the US and the downward trend is expected to continue even further. The price drop has led to frenzy in diesel customers, particularly the trucking industry, who now want to take full advantage of the price fall as petrol stations join in a spectacular price-war to attract the greatest mass of customers. However, the experts say that the prices are expected to fall even faster in future.
Oil prices in the United States have been forecasted by US Energy Information Administration to stay in the $40 dollar a barrel range this year and $50 a barrel in 2017. ProMiles, however, maintains its national average of $1.997 for on-highway diesel.
According to a report by Reuters, US oil prices have plunged by 6 percent this Monday pushing it even below the $30 a barrel threshold in post-settlement trade after Iraq’s oil outputs had climbed to a record December last year. – See more at: http://truckernews.com/diesel-prices-plummet-further-p674-90.htm#sthash.YVYYXa8o.dpuf