USA Diesel Demand Bounces Back with a Vengeance
U.S. diesel consumption bounced back with a vengeance from its Labor Day dip and surged well above the levels of the last few years.
That’s what energy and environmental geo-analytics company Kayrros noted in a new report sent to Rigzone, outlining that the development was perhaps spurred by early online holiday shopping.
“E-commerce is a major driver of U.S. diesel use, as online purchases must be delivered by truck,” Kayrros stated in the report.
“Recent polls show nearly half of U.S. consumers planned to start their holiday shopping early to beat inflation. Reports also projected that many more shoppers would be buying their gifts online than last year, with one forecast pegging the annual growth at 12.8 percent - 14.3 percent,” Kayrros added in the report.
“If so, the recent spike in diesel use may represent borrowed demand, leading to weaker consumption than would otherwise be expected later in the season,” Kayrros continued.
In a separate report sent to Rigzone at the start of September, Kayrros outlined that U.S. diesel demand had increased somewhat, “bouncing back above 2021 levels after slipping below them earlier in the summer”.
As of October 4, the average price of diesel in the U.S. is $4.863 per gallon, according to the AAA gas prices website. Yesterday’s average was $4.870 per gallon, the week ago average was $4.890 per gallon, the month ago average was $5.072 per gallon, and the year ago average was $3.356 per gallon, the AAA site showed.
The highest recorded average price for diesel in the U.S. was seen on June 19 at $5.816 per gallon, the AAA site points out.
In its latest short term energy outlook, the U.S. Energy Information Administration forecasts that retail diesel prices will average $5.20 per gallon in the third quarter of this year, $4.90 per gallon in the fourth quarter, and $4.99 per gallon overall in 2022.
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