Diesel Fuel Prices Continue to Fall Amid Historic Drop in Crude Oil Futures Prices

This article is taken from USDA’s May 7, 2020 Grain Transportation Report:

For the week ending May 4, the U.S. average diesel fuel price decreased 3.8 cents from the previous week to $2.399 per gallon, 77.2 cents below the same week last year.

Since mid-January, diesel prices have fallen 68 cents.

So far this year, March has shown the largest drop in monthly prices — a decline of nearly 30 cents per gallon in the 5-week month.

April diesel prices fell nearly 15 cents per gallon, responding in part to a historic drop in futures prices for crude oil, which traded in the negative for the first time since 1983.

According to the U.S. Department of Energy, the sharp decline in U.S. consumption of crude oil and petroleum products has led to an excess of imported and domestically produced crude oil volumes.

The excess volumes have filled U.S. storage to near capacity and put downward pressure on prices.