DOE Forecasts Higher Diesel, Gas Prices
The national average price of diesel fuel will rise to $2.74 in the fourth quarter, from $2.62 in the third quarter, as the winter heating-fuel season begins and oil prices rise, the Department of Energy said Wednesday.
Trucking’s main fuel will rise steadily into next year, topping out near $3 a gallon in December 2010, DOE said in its monthly short-term energy outlook released Wednesday.
DOE raised its 2009 price forecast by a penny from last month’s outlook, to $2.47 a gallon, and boosted its 2010 projection by 4 cents, to $2.88, from last month’s report.
Gasoline will fall to an average $2.56 in the fourth quarter, compared with $2.62 for August and September, but then rise next year.
Higher oil prices next year will cause the gasoline average to jump to $2.70 per gallon, from this year’s $2.34, the department said.
Diesel averaged $3.80 last year, peaking at a record $4.764 on July 14, 2008, while gasoline averaged $3.26, setting a single-week record $4.114 per gallon on July 7, 2008.
In its latest weekly survey released Tuesday, DOE said the national average price of diesel was $2.647 — down 2.7 cents from a 2009 high of $2.674 a gallon the previous week —marking its first decline in almost two months.
DOE also raised its 2009 projection for oil prices, saying crude futures would average $60.12 a barrel, up slightly last month’s $59.94 per-barrel estimate.
Oil will average $69 per barrel in the second half of this year, DOE said. August and early September prices have hovered between $67 and $74.
Oil averaged $99.57 per barrel last year and set a New York Mercantile Exchange closing-price record of $145.29 in July 2008.
