Oil prices dropped dramatically in trading on the New York Mercantile
Exchange on Thursday, Aug. 18, falling within range of $62 a barrel after
having set records near $67 a barrel the previous week.
Prices for light, sweet crude oil rose to $63.56 in afternoon trading
after dipping to $62.80 in the morning.
Meanwhile, diesel prices still remained high in many parts of the
nation. According to ProMiles,
diesel prices averaged $3.037 per gallon Thursday, down slightly from
Wednesday, Aug. 17. However, CaliforniaGasPrices.com reported as much as $3.44
per gallon at one station in
By contrast, the national average price on Aug. 18 was $2.61 per
In some areas, diesel fuel actually cost less than regular gasoline. In
example, the price of a gallon of regular gas on Aug. 18 averaged $2.501 per
gallon, while diesel average $2.487 per gallon, according to AAA.
The possible good news is that wholesale gas prices dropped sharply
Thursday, falling as much as 20-cents in some areas. That means lower prices at
the pumps shouldn’t be too far behind.
In related news, the Organization of Petroleum Exporting Companies has
increased its forecast for world oil demand in 2006 by 30,000 barrels per day.
Reuters reported the new forecast states that demand in 2006 is
expected to grow by 1.57 million barrels per day. In addition, OPEC said it
would likely have to increase output to offset lower-than-expected output from non-OPEC