TLC Logistics Management

Cost of diesel reverses trend, goes up 3 cents a gallon

With all the nation's attention focused on spiraling gasoline prices, perhaps the energy industry should sit up and take note that diesel prices are headed up again.

After four weeks of decline, the weekly retail on-highway price of a gallon of diesel rose 3 cents for the week ended May 21, according to the Energy Information Administration of the Department of Energy.

After reaching a 2007 high of $2.877 for the week ended April 16, the average price had declined in subsequent weeks, reaching $2.773 for the week ended May 15.

For a complete list of prices by region for the past three weeks, see chart below.

Retail gasoline prices climbed to another record Monday, while crude oil futures jumped above $65 per barrel amid concerns that U.S. refiners are not producing enough gasoline to meet peak summer demand.

Meanwhile, light, sweet crude for June delivery jumped $1.29 to $66.23 per barrel on the Nymex after earlier falling as low as $64.45. Brent crude for July delivery added $1.26 to $70.68 on the ICE Futures exchange in London.

"As we start a new week, we have an insanely bullish market Ñ which has already advanced to absurdly high levels," Cameron Hanover's Peter Beutel wrote in a research report. "We are running seven weeks behind normal this refinery turnaround season, after taking an extra seven or eight weeks in the fall to maintain refineries."

Beutel spoke as a gallon of regular unleaded was costing an average of $3.196, up from $3.178 on yesterday, according to AAA and Oil Price Information Service. Prices are up 33.7 cents from a month ago and 30.4 cents from a year ago, as demand remains strong, and a spate of planned and unexpected refinery shutdowns have constricted supply.

Click here to see weekly highway diesel prices

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