Diesel Plunges $0.22 Since Last Week, 23% Since July

Wed, 10/15/2008 - 09:38 — admin

Authored By: David R. Evanson, 610-505-0832 or devanson@comcast.net.

According to Longbow Research transportation analyst Lee Klaskow, an analysis of Energy Information Administration data shows the price of diesel has declined $0.22 in the last week and 23% since July, to an average national price of $3.659 per gallon. Mr. Klaskow said that despite recent moderation, prices are still 20.4% above the same period last year. Nonetheless, Mr. Klaskow said, “We continue to believe that moderating year-over-year increases in diesel prices are creating somewhat of a near-term tailwind for truckers due to marginally lower fuel costs and the one-to-two week lag in their fuel surcharge recovery programs.” In addition to slightly lower fuel costs, Mr. Klaskow noted, “The truckload industry has been benefiting from excess capacity exiting the market. This should help provide the industry with firmer pricing, in our view.”Mr. Klaskow said that despite recent moderation, prices are still 20.4% above the same period last year. To speak with Mr. Klaskow or receive a copy of his report, contact me at devanson@comcast.net. David Evanson To speak with Longbow Research analysts, please contact David R. Evanson, 610-505-0832 or devanson@comcast.net.

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