DOE Lowers Diesel-Price Outlook
The Department of Energy lowered its outlook diesel prices, saying that prices would peak in April and May at just over $3.30 per gallon before tailing off to near to $3 later in the year.
For the year, diesel prices are projected to average $3.21 per gallon, with 2009’s average even lower, at 3.08 per gallon, DOE said in its monthly short-term energy outlook released Tuesday.
Diesel pump prices will average $3.25 in February and $3.24 in March — well below the $3.40 average projected in January’s forecast, DOE said.
Prices will peak in April and May at about $3.32 before receding month-by-month to a low of $3.06 in December, the report said.
Monthly average gasoline prices are projected to peak at $3.38 in May, before falling below $3 in September, with a low of $2.75 in December.
DOE also cut its prediction for oil prices, as higher production may outstrip more moderate demand growth this year. Crude will average $86.46 a barrel — down from the $87.21 forecast in last month’s outlook.
Crude prices were forecast to fall even lower next year, to an average of $81.67 a barrel, DOE said.
