Fuel and crude oil are continuing down the road toward lower prices, hitting levels not seen in at least nearly two and half years.
The average cost of on highway diesel declined for the eight consecutive week, shedding 1.2 cents from a week ago and hitting $3.623 per gallon, its lowest price since February 2011.
Compared to a year ago the prices is 23.4 cents lower.
Prices fell in all regions of the country over the past week except for the Midwest where it gained 1.3 cents from a week ago for an average of $3.624, but is 20.2 cents less than during the same time in 2013.
The biggest weekly decline diesel posted in the different parts of the country was in the Central Atlantic section, 3.8 cents, for an average of $3.655 per gallon, which is 28.3 cents less than the same time last year.
The fuel ranges from a low of $3.532 in the Gulf Coast states, down 3.1 cents over the past week and 23.7 cents less than a year earlier, to a high of $3.789, 1 cent less than a week ago, but 22.6 cents less than this time in 2013.
Meantime, the average price of regular grade gasoline fell below $3 for the first time since December 2010, declining 6.3 cents over the past week to $2.993 per gallon. Compared to this time last year the price is 27.2 cents less.
Gasoline ranges from a low of $2.769 in the Gulf Coast region to a high of $3.237 in the West Coast region.
The declines in fuel price happened as the price of crude fell $1.76 in New York trading to settle at $78.78 per barrel on Monday, its lowest closing prices since June 2012. Crude prices are down 12% over the past month and 20% less so far this year.
The decline in oil prices is being attributed to price cuts from OPEC member nations Kuwait, Iran, Iraq and Saudi Arabia, as each has been trying to increase their share of the worldwide crude market while overall OPEC crude output in October hit a 14-month high, according to Bloomberg News.
Adding to price declines is the U.S. continues to ramp up crude production and is expected next year to reach its highest level since 1970, while worldwide demand for the black gold has eased and the U.S. dollar is gaining against some foreign currencies, including hitting a seven-year high against the Yen, making oil a more affordable buy.
Originally posted on Trucking Info