DOE Lowers Forecast for Fuel Prices
The prices of oil, gasoline, heating oil and diesel all will average lower next year than earlier forecast, as global demand slows with the slowing world economy, the Energy Department said Tuesday.
Diesel is projected to average $3.91 per gallon next year, down from a projected $4.01 average for 2008, reflecting a weakening of the wholesale distillate fuel price margins of this past summer, DOE said. Diesel and heating oil are both distillate fuels.
Last month, DOE said trucking’s main fuel would average $4.09 this year and $4.26 next year.
Distillate inventories as of the end of September were at 122 million barrels, down 12 million barrels from a year ago due primarily to the aftereffects of Hurricanes Gustav and Ike, DOE said in its monthly short-term energy outlook released Tuesday.
Crude oil will average $112 a barrel this year, down from the $115.81 estimated last month, DOE said.
Gasoline will average $3.56 this year, down 1.4% from the $3.61 estimated last month, after averaging $2.81 last year, the report said.
