The economy might be bumpier than I-10 in Louisiana, but according to the feds, diesel fuel prices are in for a long, stable ride.
“The EIA expects diesel prices to average $2.27 per gallon for all of 2009,” says the Energy Information Administration. EIA’s latest average price is $2.30 per gallon.
OK … and this confidence in price stability comes only five months after diesel averaged $4.76.
While not addressing diesel, a Lundberg survey of 5,000 gas stations released last weekend implies the party’s over. It shows that gas prices are on the upswing, up 12 cents in three weeks.
Industry analyst George Clemen doesn’t state a price point, but has some good analysis about oil prices in his blog:
“Historically, the US will stay on the energy conservation track for at least 2-3 years after a price shock like the one we just experienced. With the addition of a global downturn, international demand for fuels will also remain depressed. The price of crude oil could easily continue its free fall to $20 per barrel or lower, but will eventually bounce back, probably in the range of $30 to $45, where it may stay for several years — just below the price necessary to justify continuation of energy conservation projects. Looking back, the time between crude oil price peaks is consistently 8 to 10 years.”