Diesel prices fall 0.6 cents to $3.862 per gallon

Following two weeks in increasing prices after a month of declines, diesel prices dipped 0.6 cents to $3.862 per gallon, according to the Department of Energy’s Energy Information Administration.

Spurred by last week’s 4.8 cent gain, diesel prices were up 5.8 cents over the previous two weeks. And during the four week span of declines, prices dropped 2.5 cents, 6.2 cents, 4 cents, and 1.2 cents per gallon, respectively. And before that month of declining prices, diesel saw a cumulative 9.9 cent gain over a three week period.

Current prices are 26.2 cents below the 2011 high of $4.124 per gallon the week of May 2, which marks the highest level for diesel prices since August 2008, when prices were approaching $5 per gallon. The price per gallon for diesel fuel has not exceeded the $4 mark since the week of May 16, when it hit $4.061.

Compared to a year ago, diesel prices are up 91.9 cents per gallon.  In its recently-revised short-term energy outlook, the EIA is calling for diesel prices to average $3.85 per gallon in 2011 and $3.87 in 2012, with oil pegged at $94.40 per barrel in 2011 and $94.50 in 2012, down from a recent estimate of $101.00.

The price per barrel for oil is currently trading at $89.48 on the New York Mercantile Exchange. A Bloomberg report noted that prices are up for the second straight day, due to speculation a report being released tomorrow by the Department of Energy will show stockpiles dropped in the U.S., the biggest oil consuming country.

With oil prices remaining in the $80-to-$90 per barrel range, prices are still well above last year’s average of $79.64 per barrel, which means gasoline pump prices should remain higher than last year’s levels, according to a recent Associated Press report.

And while diesel prices have been below the $4 per gallon mark, shippers and carriers have told LM the still relatively high prices remain a concern. While many have indicated that prices at current levels are still digestible, they cautioned that could quickly change depending on how quickly prices rise.