Diesel prices continue above $2.60
Trucking industry calls for oversight of diesel price speculation
Dave Hannon -- Purchasing, 6/22/2009 4:30:29 PM
Diesel prices continued up this week, despite demand being low and supply being high, prompting a trucking industry group to suggest Congress take actions to limit the impact of speculative buying on energy prices.
According to the latest data from the U.S. Energy Information Administration, diesel prices continued their climb this week averaging just under $2.62/gallon nationally. Diesel prices have risen steadily for almost two months since May 4 when they were at $2.19/gallon. In mid-March, diesel prices bottomed out at $2.02.
Bill Graves, the president and CEO of the American Trucking Associations, points out in a statement today that, "Since March, the price of diesel has risen 56¢/gallon despite supplies being at a historical high and diesel demand at a nine-year low. It seems that more is at play than just the fundamentals of supply and demand."
The ATA has called on Congress to "increase the transparency of futures markets and impose reasonable aggregate position limits on energy commodities."
"While we don't believe excessive speculation accounts for all of the recent run-up in oil prices, it has to have played a part," said ATA Vice President & Regulatory Affairs Counsel Richard Moskowitz. "ATA is concerned that speculation may be increasing, as investors seek investments that can insulate them from anticipated inflation that many believe is coming as a result of the U.S. and other governments' massive economic stimulus packages."
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