The downward trend in the pricing of diesel fuel in the United States continues.
As per the latest report released on Nov. 6 by the Energy Information Administration (EIA), the current national average stands at $4.366, marking a notable decline from $4.454 recorded on Oct. 30 and an even more significant drop from the $4.545 figure observed on Oct. 23.
Across all regions of the United States, average diesel fuel prices have reflected a consistent and steady decline. The Gulf Coast enjoys the lowest prices, with a cost of $4.032 per gallon, while California bears the highest-burden at $5.816 per gallon.
In New England, the average price rests at $4.523, while in the Midwest, it sits at $4.335, as reported through data collected by the EIA.
According to statements from various companies and assessments by oil analysts, refiners in the industry are scaling back their operations, partly due to less favorable fuel profit margins and the necessity for plant maintenance activities to optimize operational efficiency.
“Refinery executives are aiming for low-90s utilization rates this quarter after running in the mid-to-upper 90% range most of the year,” according to news agency Reuters. “A pullback for seasonal maintenance and a greater shift to producing distillates have reduced production, according to company executives, analysts and U.S. government data.”
Despite this, production levels are anticipated to remain sufficient to keep fuel prices in check, given that demand is not outpacing the production adjustments, as highlighted by analysts. Refiners have persisted in high gasoline production rates to meet the demand for distillates, with the industry standard being the production of two barrels of gasoline and one of diesel for every three barrels of crude oil processed.
“Guidance has been generally within our expectations of seasonally softer levels due to the pullback in gasoline demand,” Matthew Blair, head of refiners, chemicals, and renewable fuels research at investment firm Tudor, Pickering, Holt, and Co., told Reuters.
Source: The Trucker
