More often than not, when it comes to diesel prices, prices are only heading in one direction: down.
That was the case again this week, with the Department of Energy’s Energy Information Administration (EIA) reporting that the average price per gallon of diesel fell 7 cents to $3.535 for its steepest decline since the week of October 29, 2012, when it saw an 8.6 cent drop. What’s more, the average price per gallon is at its lowest level since the week of February 14, 2011, when it was at $3.534 per gallon.
This week’s 7 cent decrease follows a 2.3 cent drop last week, and in the last 23 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 34.4 cents, and prices have fallen 47.6 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.
WTI crude dropped to its lowest level in five years last week at $66.15 on the New York Mercantile Exchange last week, which was its lowest level since September 2009. And late yesterday the average prices was at $63.05 for its lowest price since July 2009. As of press time, crude was trading at $66.62
Oil prices have tumbled since last week’s decision 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.