The price of crude oil has a direct correlation to diesel fuel prices. Over the past few months, crude oil has drifted above and below $100 given positive or negative information. Last week’s jobs report came out and showed strong job growth in the United States. While this is good news that more people are employed, it’s bad news for crude oil (prices went higher) because there will be more of a demand for diesel fuel and gas. Strong crude oil inventory numbers earlier last week made crude oil prices lower. To say it has been up and down for crude oil prices would be a correct statement.
The Energy Information Administration (EIA) reported that the price for U.S. on-highway diesel fuel prices rose 3 cents to $3.903 per gallon, the second consecutive increase. Gas prices were also reported and jumped 6 cents to $3.331 per gallon. Now, gas prices are 1% or 3.3 cents more expensive than a year ago. When also most all year it seems like gas prices would stay low, they have crept back up.
The Energy Information Administration (EIA) reported that the price for U.S. on-highway diesel fuel fell eight-tenths of a penny to $3.871 per gallon, the second consecutive increase. (The EIA is the statistical agency of the U.S. Department of Energy.) The national average price is 1.9% or 7.4 cents lower than at this time last year.
It might not come as a surprise that Texas made the top 10 list. They’re the 2nd largest state in our country, and oil is a big part of their economy. Currently there are 139 active operating refineries in the USA, and just under 100 of them are occupied in these states listed below. It also probably doesn’t come as a surprise that these are typically well paying jobs, and have helped keep the unemployment rates down. Here they are:
On Friday, President Barack Obama told auto club AAA in an interview Friday that the tension in Iran and the Middle East is adding $29 to $30 a barrel to the price of oil. That would mean that its adding 60-90 cents per gallon to gas prices and diesel fuel prices. I am not sure if there is a $30 premium. I would say $20 maybe but even that is difficult to determine. We have many different things that are adding to the price of oil.
I was going to write an article on Friday about what happened to all of those people, who way back when, predicted $100 a barrel for crude oil and increased diesel fuel prices and gas prices right along with it. In fact, I admit, I was one of those people. Wasn’t almost everyone? Well, many things have happened since then.
Don’t Start Doing The Fleet Fueling Two Step Just Yet