Diesel prices jump 6.8 cents per gallon   

Weekly retail on-highway U.S. diesel prices increased by 6.8 cents to $3.184 per gallon, and are up 11.7 cents in the last 2 weeks. Prices had been stable but are now up 25 cents per gallon since early September and are at the highest level since 10/27/08, when prices were rapidly falling. We track an index of the IShares COMEX Gold Trust (IAU) compared to an index of on-highway diesel prices. As much as gold has risen, diesel prices are rising more quickly since the recent low point on 3/16/09. The gold index is up 41% while the diesel index is up 57%. Diesel prices peaked at $4.764 per gallon in July of 2008 and were above $3 per gallon from September 24, 2007 to November 3, 2008. Up until the last few weeks, prices in 2010 had fallen between pricing levels of the prior two years, but now exceed 2008 prices for the same week which is better illustrated in our second graph.