Diesel prices drop for second straight week

| 7/26/2005

The national average price of diesel fell 5 cents for the week ending July 25, marking the second drop in a row after weeks of steady increases.

According to the U.S. Department of Energy, the national average slipped to $2.342 per gallon, down from $2.392 the previous week. That’s still 58 cents higher than prices for the same week in 2004.

The biggest drop occurred in the Midwest, where prices fell 6.9 cents to $2.292 per gallon. The lowest prices, however, were found along the Gulf Coast, which posted an average of $2.278 per gallon.

California posted the highest prices, falling just over a penny to $2.578 per gallon. There was no change along the rest of the West Coast, with prices holding steady at $2.53 per gallon. The Rocky Mountain region, meanwhile, came in at $2.405 per gallon.

The East Coast cost dropped 4.7 cents to $2.365 per gallon. In New England, prices remained high, in spite of dropping 2.7 cents to $2.508 per gallon. The Central Atlantic region was not far behind at $2.481 per gallon, while the Lower Atlantic came in at $2.303 per gallon.

Meanwhile, prices for light, sweet crude oil were hovering around the $59 per barrel mark in trading on the New York Mercantile Exchange on July 26.

Industry analysts said oil prices were likely to stay at those levels as the U.S. deals with the fallout from Hurricane Emily, which temporarily suspended drilling operations in the Gulf of Mexico.

As a result, U.S. crude oil inventories are expected to be down, although the Organization of Petroleum Exporting Countries is expected to raise its output levels in the next week, which could cause prices to dip again.