Truckers should fill up their tanks as Diesel price could surge $.60 per gallon this week
Diesel prices could spike by over 20% overnight due to the market coming to grips with the biggest blackswan event to hit oil in over a decade. On Friday night, while most of the U.S. was settling in for a weekend of high school, college and professional football, the world’s second-largest oil producer was struck by a fleet of drones. The attack resulted in nearly half of Saudi Arabia’s oil production capacity taken offline, representing nearly 5% of global supply. According to the article from the freightwaves.com and its author
According to the Diesel Truckstop Actual Price per Gallon in SONAR (DTS.USA), FreightWaves’ own daily truckstop retail assessment, the current national average of ultra-low diesel (ULSD) at truck stops is $2.98 per gallon. If a 20% surge holds, it could translate to an overnight increase of nearly $.60 per gallon at the pump. Fuller also wrote in his article.
This would have a massive impact on carrier profitability and put some of the carriers that are struggling from weaker operating conditions at risk. A $.60 per gallon increase could drive operating costs for truckload carriers up by nearly $.09 per mile. That big of an increase could translate to a 3-6% impact to truckload carrier profits. According to Fuller.
Read the full story HERE
SONAR: (DTS.USA). The average retail price of ULSD at the truckstops. Updated daily.
SONAR subscribers can see this dashboard.
Source and credits: freightwaves.com // iTrucker / Mario Pawlowski
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