Diesel prices continue to slide, while oil prices marginally surge

| Wednesday, September 14, 2005

Diesel prices continued to slide down toward pre-Katrina levels Wednesday, Sept. 14.

ProMiles reported a national average of $2.819 per gallon, down about 2 cents from the previous day.

California, Nevada, Utah and Washington state were all reporting prices above $3 per gallon Wednesday. The lowest prices were in Oklahoma, at about $2.60 per gallon.

Fuel supplies at some truck stops were beginning to return to normal. Flying J reported low supplies at only five of its stops on its Web site. Two of those stops are in Kentucky, while the others are in Tennessee, Mississippi and Georgia.

Travel Centers of America, which had been rationing fuel in many areas, was only rationing at one stop in Atlanta, GA. Trucks at that stop were being limited to 50 gallons of diesel.

Petro reported no outages, but said supplies were still tight in Alabama and Georgia.

Trading for light, sweet crude oil was at the $65 per barrel mark as of mid-afternoon Wednesday on the New York Mercantile Exchange.

A report from the Energy Information Administration that said crude oil inventories had dropped by 6.6 million barrels for the week ending Sept. 9. The initial forecast had called for a drop of only 2 million barrels, which could explain the possible jump in oil prices.

Still, the report said that the inventory was above average for this time of year.

Meanwhile the oil industry continues its slow recovery in the Gulf of Mexico.

The Oil Price Information Service said some refineries in the Gulf region are beginning to recover and could be back at full operating capacity as early as next week. Others could take as much as six weeks to two months to fully restore operations.

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