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.
While buying diesel fuel for the past month or so, you have probably seen prices up slightly one week, then down a little lower the next week. We are basically in a flat market since we have come out of the extremely cold winter. This week’s Department of Energy diesel fuel price is $3.959. This marks the 4th straight week diesel fuel prices have fallen. After topping out at $4.021 on March 10th, diesel fuel has fallen 6.2 cents a gallon.
Without some geopolitical event or major supply disruption, history would say that prices will continue to fall over the next several weeks as they have in past years at this time. Just looking in my crystal ball, I could see prices falling 15-20 cents at some point in June.