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Diesel creep: Fuel inflation comes back

After a month of modest decreases, the national average U.S. retail price of diesel fuel rose to $1.716 from the previous mark of $1.700, the Department of Energy reported July 5.

The highest prices in the nation were in California, where the average cost is $2.076. On the West Coast, the price rose from $1.969 to $2.010.

Among the higher prices were New England, at $1.802; $1.788 in the Rocky Mountain region; and the Central Atlantic region, at $1.790.

Other prices include the Lower Atlantic region, where the average price is $1.649; the Midwest, at $1.670; the Gulf Coast, at $1.641; and the East Coast, at $1.698.

In the meantime, Reuters news service reported that crude oil prices have risen as supply has tightened by attacks on Iraqi pipelines, which threatened a possible halt to output from Yukos, Russia's No. 1 oil producer, which is facing bankruptcy.

Exports from Iraq's southern terminals fell to 960,000 barrels per day July 3 after saboteurs blew a hole in one of two feeder pipelines.

Iraqi exports were further cut July 4 by an attack on a north-south pipeline through which northern exports were being diverted south. Northern crude is usually pumped through a pipeline to Turkey, but earlier sabotage caused the diversion, Reuters reported.

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