Diesel fuel prices
The EIA (U.S. Energy Information Administration) released its This Week in Petroleum Report on July 13, 2016. It reported that US on-highway diesel fuel prices fell by 0.37% at $2.41 per gallon on July 11, 2016, compared to the previous week. Prices fell for the fourth straight week.
Heating oil and diesel fuel prices forecast for 2016
The EIA, in its July Short-Term Energy Outlook report, forecasts that on-highway diesel fuel prices will average $2.36 per gallon and $2.71 per gallon, respectively, in 2016 and 2017. Heating oil prices could average $2.16 per gallon in 2016 and $2.64 per gallon in 2017.
Heating oil and diesel fuel prices are driven by US distillate inventories. Distillates consist of diesel fuel and heating oil. Read the last part of this series to learn more about US distillate inventories.
Impact on energy stocks and ETFs
Volatility in oil and gas prices also impacts ETFs and ETNs such as the VelocityShares 3x Long Crude Oil ETN (UWTI), the Direxion Daily Energy Bear 3x ETF (ERY), and the United States 12 Month Oil ETF (USL).
In the next part of this series, we’ll take a look at gasoline inventories.