DOE Lowers Diesel-Price Forecast
Diesel’s national average retail price will be $3.86 a gallon this year, the Department of Energy said, lowering its most recent forecast by 2 cents.
Trucking’s major fuel will average $3.74 in the fourth quarter, below its current $3.814, DOE reported in its monthly short-term energy outlook released Sept. 9.
The price of gasoline will drop even more sharply, from its recent peak of $3.69 in June to $3.41 this month and $3.18 per gallon in December.
Diesel averaged $3.92 and gas averaged $3.51 per gallon last year.
The declines are being led by lower crude oil prices, which fell to an eight-month low on Sept. 8, closing at $92.66 a barrel on the New York Mercantile Exchange.
DOE’s Energy Information Administration, which writes the outlook, said oil will average $98.28 a barrel this year, down more than $2 from last month’s projection. Prices held over $100 from mid-February through July.
Crude will average $94.67 a barrel next year, up slightly from DOE’s projection in August, the report said.
EIA Administrator Adam Sieminski said in a statement that higher U.S. oil output is bolstering U.S. energy independence.
The agency forecasts U.S. crude output will be 8.53 million barrels per day this year, up from 7.45 million bbd last year. EIA projects even higher output of 9.53 million bbd next year.
The monthly short-term outlook often lags its weekly price survey. Diesel was unchanged this week from the previous week, at $3.814 a gallon, while gasoline dipped 0.2 cent to $3.457.
The EIA report noted that daily and weekly national average prices can differ significantly from monthly and seasonal averages, and that prices in some areas can be 30 cents or more above or below the national average price.
