Diesel prices continue their downward spiral, falling 11.6 cents to $3.419 per gallon

The new slogan for weekly diesel prices could very well be: how low can you go?

A week ago, the average price per gallon of diesel gasoline saw its steepest decline in more than two years, when it fell 7 cents to $3.535. This week took that decline a step further, with the Department of Energy’s Energy Information Administration (EIA) reporting that the average price this week fell 11.6 cents to $3.419 per gallon.

According to EIA data, this week marks the lowest national average price per gallon for diesel since it was $3.407 the week of January 17, 2011, while now standing as its largest weekly decline since falling 14.5 cents the week to $2.664 during the week of November 24, 2008.

In the last 24 weeks, diesel has seen only one weekly gain, which came the week of November 10, when the average price per gallon headed up 5.4 cents to $3.677.

On an annual basis, the average price per gallon is down 45.2 cents, and prices have fallen 59.2 cents since hitting a 2014 high of 4.021 during the week of March 10.

In its recently-issued Short Term Energy Outlook, the EIA pegged the average price for diesel prices in 2014 at $3.82 and $3.38 in 2015, with crude oil at $95 per barrel in 2014 and $77.75 in 2015.

CNN reported on its Website earlier today that West Texas Intermediate fell below $55 for the first time in five years, while the price of the more global Brent crude fell below $60, also for the first time in five years. CNN said that the price of both types of oil are now down more than $50 a barrel since hitting a 2014 peak in June.

Oil prices have tumbled since a decision made earlier this month by the Organization of Petroleum Exporting Countries to not cut production levels, even though prices have continued to decline. With that decision, production levels remain capped at 30 million barrels per day, despite decreasing global demand, which, in turn, has led to downward pricing.