Diesel price forecasted to see sharp dip in 2014

| December 11, 2013

fuelingThe national average price for a gallon of diesel fuel is still expected to fall 12 cents in 2014 to $3.77 a gallon, according to the Department of Energy’s Energy Information Administration.

In its monthly Short Term Energy Outlook report, the EIA forecasted that diesel would average $3.93 a gallon in 2013, a 4-cent drop from 2012’s average.

Related

Topping 10 mpg: Former Trucker of the Year blends driving strategy, equipment

Are we about to pass the 10-mile-per-gallon threshold in long-haul trucking? Owner-operator Henry Albert certainly thinks so. He regularly pushes the envelope in his 2012 ...

The 2014 decline, however, isn’t as large as the EIA predicted in its November outlook, when it forecasted the price of diesel would average $3.73 next year and $3.91 this year.

The decline, EIA says, is due to an expected drop in crude oil prices as the growth in the non-OPEC oil supply exceeds the growth of the world’s consumption.

The EIA’s outlook forecasts have been bouncing around some in recent months, with the highest coming in September, when EIA projected the price of diesel would average $3.82, likely based on an increased chance of U.S. military action in the Middle East. That projection fell in October to $3.76 and then again in November.

The national average diesel price had steadily been declining since late August until recent weeks, when it rose a bit before mostly stagnating last week.

Also, the EIA projects the price of natural gas — per the Henry Hub natural gas spot price — to climb in 2014, following a spike this year. Natural gas averaged $2.75 per million British therm units (MMBtu) and is forecast to average $3.69 this year and $3.78 next year.

More About:

,
  • Jimmy the Greek

    diesel needs to drop to .30 per gl

  • Doug

    Yeah sure, I heard the same thing last year. How come it is cheaper to make diesel fuel than gas but it cost more? Don’t believe anything the federal government or any member of our corrupt government says. The told us deregulation would help, yeah that was a lie too. Every cost went up.

OverdriveOnline.com strives to maintain an open forum for reader opinions. Click here to read our comment policy.