CHICAGO (RFD-TV) — As input costs continue to rise, diesel prices have held steady in recent weeks. Energy analysts at GasBuddy advise keeping an eye on some behind-the-scenes developments.
“So long as oil prices remain low, we have seen the U.S. rig count start to decline,” said Patrick Haan with GasBuddy. “In fact, the rig count is now below maintenance levels, meaning that there is the potential that the lower rig count we are seeing today will translate in time to a drop in U.S. oil production. That is something that oil companies will likely respond to the lower price of oil by cutting additional drilling.”
As of Thursday, September 25, AAA reports that the average cost of a gallon of diesel remains steady at $3.69. One year ago, that same gallon cost around $3.58. Gasoline prices are also seeing some action lately. A gallon currently costs $3.16, down from $3.21 per gallon last year.
Harvest is a diesel-hungry time of year—and while those prices could drop in the coming weeks, some states are still holding at more than $5 a gallon.
“Diesel prices… well, they’ve started to ease a little bit as well, though not as much as gasoline. Diesel prices,” Haan said. “Still, in Washington state, [diesel prices] are averaging about $5.04. That’s down about a penny in the last week. When it comes to gas prices, motorists need not be in any hurry to fill their tanks. I do expect that nine-cent decline in average prices will continue for the next couple of weeks.”
Experts say flooding the zone with more money could have unintented consequences without opening new markets for planted crops and inputs under significant pressure.
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