DOE Expects Diesel to Average $2.27 a Gallon This Year
The Department of Energy expects the price of diesel to average $2.27 a gallon in 2016.
DOE’s Energy Information Administration on May 10 increased its forecast for the price of trucking’s main fuel by 16 cents a gallon and predicts diesel will be $2.64 a gallon in 2017.
“Consumption of distillate fuel, which includes diesel fuel and heating oil, fell by 60,000 [barrels a day] (1.5%) in 2015, and it is expected to fall by an additional 100,000 b/d (2.5%) in 2016," EIA said in its monthly short-term energy outlook. "Falling distillate consumption in 2016 is the result of relatively warm winter temperatures, reduced oil and natural gas drilling, and falling coal production, which has reduced diesel use in rail shipments of coal.”
During the 2016 summer driving season, EIA expects regular gasoline retail prices to average $2.21 a gallon, 42 cents lower than last summer.
isydiavibes/FlickrU.S. regular gasoline retail prices are forecast to average $2.08 a gallon in 2016 and $2.24 gallon in 2017, according to the report.
EIA said Brent crude oil prices are forecast to average $41 a barrel in 2016 and $51 a barrel in 2017, $6 and $10 higher than forecast in last month’s short term outlook.
“West Texas Intermediate [WTI] crude oil prices are forecast to average slightly less than Brent in 2016 and to be the same as Brent in 2017,” according to the report.
The U.S. retail diesel average inched up 0.5 cent to $2.271 on May 9. Diesel, however, remained 60.7 cents cheaper than a year ago, when the price was $2.878. Most regions posted higher prices, DOE said after its May 9 survey of fueling stations.
But the Lower Atlantic was unchanged at $2.232, and the Gulf Coast fell by 0.6 cent to $2.131.
Meanwhile, the national average price for regular gasoline fell 2 cents to $2.220 a gallon, EIA said, leaving the cost 47.1 cents cheaper than a year ago. Prices climbed in five regions and fell in four others.
