OPEC Deal Sends Diesel, Crude Oil Prices Upward
Source: EIA
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Source: EIA
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On the heels of a major agreement between oil producing countries to cut oil production, diesel fuel prices saw a significant increase last week, according to the latest numbers from the Energy Department.
The average price of on-highway diesel fuel increased 6 cents last week, hitting $2.48 per gallon at the pump. The price is now 10 cents more expensive than it was in the same week of 2015.
Prices were up in all regions of the U.S. with the largest increase hitting the Midwest with a 7.5-cent jump for the week. The smallest change was in the Rocky Mountain region where prices increased 0.7 cents.
Gasoline prices were also up last week with the average price increasing 5.4 cents to $2.208 per gallon at the pump. The price is now 15.5 cents more expensive than it was in the same week a year ago.
The largest increase in prices occurred in the Lower Atlantic region with an 8-cent increase for the week. The largest decrease in prices was in the Rocky Mountain region, where prices fell 2.6 cents.
Crude oil prices have risen to the highest levels since summer of 2015 as a deal between OPEC members to reduce oil production has increased the market value of oil, according to a MarketWatch report.
Rumors of a deal to cut or freeze oil production have been around for a few month, but until last week’s agreement, crude oil prices had remained at low levels due to weaker global demand.
Now, with a cut in production, coupled with the onset of winter in the Northern Hemisphere and other smaller factors, prices seem to be poised for a rebound.
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