DOE Boosts 2015 Diesel Price Forecast a Nickel to $2.89
Diesel fuel will average $2.89 per gallon at the pump this year, the Department of Energy reported, as it boosted its most recent forecast by 5 cents.
Gasoline also will be more expensive than previously estimated, DOE’s Energy Information Administration reported March 10 in its monthly short-term energy outlook.
EIA boosted its gasoline price estimate by a nickel to $2.39. Gas will average $2.72 next year, down a penny from the last forecast, the report said.
Diesel won’t hit the $3 level until November and will climb to average $3.25 in 2016, DOE said. Next year’s price outlook is 2 cents higher than DOE’s previous projection.
In contrast to diesel and gasoline, EIA lowered its price forecast for U.S. West Texas Intermediate crude oil by almost $3 from last month’s outlook to $52.15 a barrel, citing continued high production and supply levels.
“U.S. commercial crude oil inventories, which are already at the highest level since 1930, are expected to continue growing over the next two months,” EIA Administrator Adam Sieminski said in a statement following the outlook’s release.
“Gasoline prices have recently been driven higher by increasing crude oil costs as well as several unplanned refinery outages,” he said, adding that even with the recent increases, U.S. households will save about $710 in gas costs this year.
EIA had previously estimated the average U.S. household would save $750 per year compared with 2014.
DOE’s short-term energy outlook often lags its weekly price survey, which this week showed that diesel and gasoline both had small increases, to $2.944 and $2.487 per gallon, respectively.
