Diesel prices see first weekly gain since November

While one week does not make a trend, the average price per gallon for diesel gasoline took an unusual turn this week, according to data issued this week by the Department of Energy’s Energy Information Administration (EIA): the price went up.

With a 0.4 cent increase to $2.835 per gallon, the average price per gallon checked in at $2.835, which is slightly ahead of last week’s $2.831 per gallon, which marks the lowest average weekly price since the week of February 15, 2010, when it was at $2.756 per gallon.

This week’s slight increase was preceded by a 3.5 cent drop last week, a 6.7 cent drop the week before, and a 12-cent drop on January 19, which marked the first time diesel prices fell below $3 per gallon going back to the week of September 27, 2010.

This week’s gain is the second weekly increase for diesel prices in a little more than seven months, going back to the week of June 30, 2014, when it rose from $3.919 per gallon to $3.912. And since June 30, 2014, the only week seeing an increase was from $3.623 the week of November 3 to $3.677 the week of November 10.

On an annual basis, the EIA said that prices are down $1.142 cents. And in its recently-issued Short Term Energy Outlook, the EIA pegged the average price for diesel prices in 2014 at $3.82 and $3.07 in 2015, with crude oil at $93.82 per barrel in 2014 and $62.75 in 2015.

The average price per barrel of oil on the New York Mercantile Exchange is at $51.10. The Wall Street Journal reported today that oil prices lost half of their value in 2014 and “continued falling in January as rapid supply growth overwhelmed moderate demand. The Organization of the Petroleum Exporting Countries opted not to cut output, further weighing on prices. It added that analysts say the market is still oversupplied, and some expect prices to fall to new lows as refiners enter seasonal maintenance, lowering demand for crude oil, and global inventories continue to grow.