The document summarizes North American fuel markets in July 2018. It reports that wholesale average gasoline prices declined 7.65 cents from the prior month to 284.76 cents per gallon. The DOE index for gasoline prices rose slightly by 3.73 cents to 325.79 cents per gallon. The DOE wholesale spread increased substantially by 11.38 cents compared to the previous month. OPEC's decision around oil production led to mixed price movements for diesel and crude oil in the first half of the month. Most states increased their fuel taxes in July. Disruptions at two major oil terminals in Libya reduced production and put upward pressure on crude oil prices. Regional diesel price volatility was low with most states seeing changes within

1. North American Fuel Markets
July 2018

2. 284.76¢/gallon
Wholesale Average
7.65¢ below the prior month’s average.
June Price History
325.79¢/gallon
DOE Index
3.73¢ above the prior month’s average.
41.03¢/gallon
DOE Wholesale Spread
11.38¢ above the prior month’s average.

3. OPEC Announcement Led
to Mixed Price Movements
Diesel prices declined through the first half of
the month with anticipation of OPEC’s June 22
meeting resulting in significant oil production
increases. Instead, the outcome of OPEC’s
meeting did not meet market expectations,
which led to increased prices for crude oil and
diesel heading into July.

4. July is a Common Month for
State-Level Fuel Tax Changes
Seven states adjusted tax rates, with all
but one increasing their current levy.

5. Outage at Two Major Libya Oil
Terminals Triggered Production Decline
Libya has been marred by civil conflict for much of
the past decade, which caused monthly production
fluctuations from 0.2 to 1.6 mmbd since 2012. The
nation’s oil sector rebounded in the past two years
to over 1.0 mmbd as it was one of the few OPEC
nations exempted from the production quota. The
latest outage, caused by blockades at the ports, is
removing 80% of current oil production and placing
upward price pressures on crude oil prices.

6. Variance by Geography
Regional diesel price volatility remained low through June, as 40 of 48 states displayed changes
within 4.0¢ of the national average movement of 7.65¢/gallon. Refinery utilization averaged over
95% nationally for the first time since December, and weekly utilization reports from each region
exceeded 90%. This marks significant improvement for states in the Rocky Mountain and West
Coast regions, which had not exceeded the 90% mark for the majority of April and May.

7. Marine Fuel Update | Emergency
Bunker Surcharges
Container carriers recently implemented emergency
bunker surcharges (EBS) to help them cover rising fuel
costs. Maersk, MSC, and CMA CGM set June 1 and July 1
dates for EBS to take effect on their respective trade lanes.
This marked the second wave for EBS in as many quarters
during 2018, as carriers continue to feel pressured as fuel
prices climb.
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8. Challenges of Alternative Energy
in Transportation
READ MORE
Technology is fundamentally shaping the world we live in. It seems that
rarely a week goes by without an announcement of a new advancement in
the energy or transportation industries. As technology continues to rapidly
evolve and life looks ever different, the one constant the industry can count
on is that it will, undoubtedly, continue to change.

9. NOT A CLIENT? LEARN MORE.
Mercury Group 2018
August 6-8 in downtown Chicago at the Loews Hotel
The Mercury Group is an annual event for our clients to
collaborate, create best practices, and engage with their industry
peers. Whether you’re the Vice President of Supply Chain, Risk
Manager, Procurement Leader, or Director of Transportation,
the Mercury Group will give you the tools needed to reduce the cost,
consumption, and emissions in your transportation energy network.