In The News

DOE says diesel to average $2.27 a gallon during summer

WASHINGTON — Diesel prices, which averaged $4.37 per gallon last summer, are projected to average $2.27 this summer, the Department of Energy forecast this week.

However, because short-term prices can be quite volatile, weekly prices could be higher or lower than the monthly average, the DOE said.

In addition, if consumption turns out to be greater than projected the outlook issued this week, there could be increases in the monthly price averages, the agency said.

The forecast said distillate fuel consumption, which includes both diesel fuel and heating oil, is projected to be about 4.5 percent lower than last summer's average.

For the week ended April 13, the DOE said the average on-highway price of a gallon of diesel was $2.229.

Distillate inventories are projected to start the summer season at a record 142 million barrels, about 30 million barrels higher than the previous 5-year average.

While distillate stocks normally build during the summer season in preparation for winter heating demand by an average of 21 million barrels during the five previous summers, inventories this summer are expected to show little change.

Continuing strong world demand for distillate fuels last year despite record-high prices contributed to U.S. net exports of distillate fuel averaging almost 420,000 bbl/d during last summer.

During the previous five summers (2003 – 2007) the U.S. was a net importer of distillate fuel, at an average of 120,000 bbl/d.

This summer, despite the cutback in domestic refinery production, the United States is expected to continue be a net exporter, averaging about 380,000 bbl/d, the DOE said.

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