According to today's USDA Grain Transportation Report, for the week ending October 24, the U.S average diesel fuel price continued to rise for the third week in a row. At $5.341 per gallon, the price was up 2 cents from the previous week and up $1.628 from the same week a year ago (GTR fig. 13). To neutralize rising fuel prices, the White House announced three key initiatives.
First, the Dept. of Energy (DOE) will release 15 million barrels of oilfrom the Strategic Petroleum Reserve (SPR) for Dec. delivery. This action fulfills the President's intention in March of releasing up to 180 million barrels of SPR crude oil for sale.
As further movement against high prices, the Administration intends to repurchase crude oil for the SPR when prices are at or below $67-$72 per barrel. The repurchase should increase certainty around future crude oil demand and spur production today.
Finally, the President is calling on companies to pass on lower energy costs to consumers immediately.
Read the full report here.