DOE Boosts 2015 Diesel-Price Forecast But Lowers 2016 Outlook
The Department of Energy bumped its forecast for 2015 diesel prices up by 2 cents to $2.88 a gallon, but lowered its 2016 forecast by 12 cents.
Trucking’s main fuel will average $3.12 next year, DOE’s Energy Information Administration said in its monthly short-term energy outlook, released May 12, lowering its projection from last month’s outlook.
Diesel will average in the $2.80s and $2.90s through early next year before crossing the $3 mark next March, EIA said.
The agency raised its 2015 oil-price outlook by almost $2 to $54.26 a barrel, and lowered its 2016 forecast to $65.50 from last month’s $70 per-barrel projection.
“Lower oil prices and fewer rigs drilling for crude will take a bite out of U.S. oil production growth this year and in 2016,” EIA Administrator Adam Sieminski said.
But “while there are fewer rigs drilling for crude, U.S. oil production this year is still on track to be the highest in more than four decades,” Sieminski said in a statement following the outlook’s release.
Gasoline will average $2.68 this month and gradually fall about 20 cents by September and by 40 cents by the end of the year to about $2.30, EIA said.
The motor fuel will average $2.43 gallon this year, 3 cents higher than last month’s outlook. Last year, diesel averaged $3.83 and gasoline averaged $3.36 per gallon.
EIA’s monthly short-term energy outlook often lags its weekly price survey, which has shown four consecutive gains for both diesel and gasoline, following $60 per-barrel oil last week for the first time since December.
The agency’s most recent weekly survey, released May 11, showed diesel at $2.878 and gasoline at $2.691 per gallon.
