The average price for a gallon of diesel is now forecasted to fall a 11 cents in 2014 from 2013’s average of $3.92, as the Department of Energy’s Energy Information Administration now expects the price of diesel in 2014 to average $3.81 this year.
The EIA predicted last month in its Short Term Energy Outlook that the price of diesel in 2014 would average $3.77 this year.
The STEO released Jan. 7, in addition to the upward revision, also includes a forecast for 2015: EIA predicts the price next year will drop 9 cents from this year’s forecasted average to $3.72 a gallon.
2013’s average of $3.92 is a drop of 5 cents from 2012’s $3.97.
The EIA’s forecasts are largely volatile and sway several cents each month based on a variety of factors. For instance, it forecasted in November that 2014’s price would average $3.73 a gallon before revising that to the $3.77 predicted last month.
The diesel price drops predicted for 2014 and 2015 stem from predicted drops in crude oil prices, which the EIA says could drop as supply growth exceeds growth in world consumption.