Diesel fuel prices
August NY Harbor ULSD futures fell by ~1.2% and closed at ~$1.30 per gallon on Wednesday, July 27, 2016. Prices tested four-month lows despite the decline in distillate inventories. We’ll look at distillate inventories in Part 9 of this series.
On July 27, the EIA (U.S. Energy Information Administration) reported that US on-highway diesel fuel prices fell by 0.95% to ~$2.38 per gallon on July 25, 2016, compared to the previous week. Prices fell for the sixth straight week.
US on-highway diesel prices hit $2.43 per gallon for the week ended June 13, 2016—the highest level so far in 2016.
Heating oil and diesel fuel prices forecast for 2016
The EIA estimates that on-highway diesel fuel prices will average $2.36 per gallon in 2016 and $2.71 per gallon in 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. Please read the last part of this series to learn more about US distillate inventories.
Impact on energy stocks and ETFs
In the next part of this series, we’ll take a look at gasoline inventories.