Diesel price still expected to fall 20 cents through 2014, 2015

| February 14, 2014

Feb 14 steoThe Department of Energy has once again upwardly revised its forecast for 2014′s average diesel price, pushing it up another 2 cents to $3.83 — still a 9-cent drop from 2013′s average — in its Energy Information Administration’s Short Term Energy Outlook, published monthly.

The average price of diesel in 2015 is still projected to fall to $3.73, based on projected demand and supply of crude oil, per the Feb. 11-released STEO.

Related

Diesel spikes nationwide, jumps 10 cents in three weeks to highest point since September

The national average price for a gallon of on-highway diesel jumped again in the week ended Feb. 10, rising 2.6 cents to $3.977. The price of diesel has now risen 10.4 cents in the last three weeks and has hit its highest point since the week ended Sept. 9's $3.981.

The EIA’s monthly forecasts are somewhat volatile and can be swayed by lots of factors.

This is the fourth month in a row the EIA has upwardly revised its 2014 projection. In November’s STEO, the EIA forecasted diesel would average $3.73 in 2014. Then in December, it revised that projection to $3.77, before bumping it up another 4 cents last month to $3.81.

2013′s average price dropped 5 cents from 2012 to $3.92.

The continued projection of diesel price declines stems from a potential growth in supply that will outpace growth for demand, per EIA.

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  • ldmff

    When are we going to call the oil company’s bluff when they use the excuse #1-2 are going up on account of fuel oil production? How many homes or businesses still use fuel oil anyway? I think most places use natural gas or propane, I wouldn’t use that stinking fuel oil period. One day a local transport driver called dispatch and said the customer couldn’t hold all the diesel they ordered. So dispatch gave him orders to go dump it in a fuel oil tank at a home or business. The transport driver didn’t think too much about that situation because he says they do it from time to time and there is very little difference if any between road diesel and fuel oil, wouldn’t this be deemed fraud in a court of law?Why are we operating on these shallow inventories when in reality we’re almost up to our neck in oil. There are certain times of the year when diesel is in less demand, that is when they should be building up inventories to carry us over when they’re supposedly making their precious heating oil, I doubt if it will spoil!

  • karen

    when I started in the trucking business in 2002 diesel fuel was $1.59 a gallon and unleaded gas was $1.75. what changed that diesel is higher now??? New York already pays very high taxes on our fuel. Then you pay Ifta and unified carriers registration, HUT, federal hut, and then you have to register your vehicle every year not every two like an automobile. The article says the cost of diesel is $3.81??? then why am I paying $4.35 at the pump and its higher at the truck stops so we use corner gas stations. In the last three weeks fuel has risen $0.30 a gallon. And the oil companies get richer and richer and richer. If truckers were smart we’d all park our trucks for 48 hours. not a one moved an inch anywhere in this country and the economy would come to a screeching halt. If you bought a TRUCKER BROUGHT IT!!!!!!!!!!!!!!!! wake up america

  • Douglas

    The Department of Energy has NEVER produced any energy. Also hasn’t anyone noticed that any department of the federal government only tells lies?