U.S. EIA lowers its summer diesel price estimate to US$4.08/gallon from US$4.25/gallon, citing easing worldwide crude oil prices
GRAIN VALLEY, Missouri
May 10, 2012
– Last month, the U.S. Energy Information Administration predicted diesel would average $4.25 in midsummer before tapering off in the fall. The administration has revised those numbers this month, however, projecting the summer average right around $4.08.
The EIA’s Short Term Energy Outlook published Tuesday, May 8, projects diesel will hold steady between $4.07 and $4.09 from June through September and avoid an August spike.
Department analysts say the revised estimates follow a trend of easing crude oil prices across the globe, coupled with the highest level of domestic crude production since 1998. A mild winter helped keep supplies strong, the analysts said.
During the past month, the national average price for on-highway diesel has come down 9 cents per gallon from nearly $4.15 to just under $4.06.
Projecting the price average out to the end of the calendar year, the EIA puts diesel right around $4.06, which is 9 cents lower than analysts projected a month ago.
The department has also lowered its projections for the average price of gasoline from $3.81 to $3.71 for the calendar year.