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How Are US On-Highway Diesel Fuel Prices Trading?

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Diesel fuel prices 

The EIA (U.S. Energy Information Administration) released its “This Week in Petroleum Report” on June 29, 2016. It reported that US on-highway diesel fuel prices were trading flat at $2.42 per gallon on June 27, 2016, compared to the previous week. For the week ending June 13, 2016, prices hit $2.43 per gallon—the highest level so far in 2016. Mild winter weather in 2015–2016 compared to 2014–2015 led to lower diesel prices.

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Heating oil and diesel fuel price forecast for 2016

The EIA estimates that diesel fuel prices will average $2.34 per gallon in 2016 and $2.69 per gallon in 2017. Heating oil could average $2.16 per gallon in 2016 and $2.61 per gallon in 2017, per EIA sources.

Diesel fuel and heating oil 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 

Gasoline, diesel fuel, and crude oil prices affect US refiners and oil producers such as Western Refining (WNR), Northern Tier Energy (NTI), Laredo Petroleum (LPI), and Comstock Resources (CRK).

The roller-coaster ride in oil and gas prices also impacts ETFs and ETNs such as the Direxion Daily Energy Bear 3x Shares ETF (ERY), the DB Crude Oil Double Short ETN (DTO), and the United States 12 Month Oil Fund (USL).

Read the next part of this series to learn about gasoline inventories. 

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