An analyst with the U.S. Energy Information Administration said she believes there will be light at the end of the tunnel of skyrocketing diesel prices.
The trouble is, however, no one knows when we’ll see that light. The average price of diesel topped $3.30 per gallon for the week ending Monday, Nov. 5, 2007. That’s up 14.6 cents per gallon from the previous week’s average of $3.157 per gallon.
“I think we are seeing a high cycle – a very high cycle – right now. Exactly when it’s going to peak is very difficult to tell,” EIA analyst Joanne Shore told “Land Line Now” on XM Satellite Radio.
Diesel fuel is produced from the same petroleum products as home heating oil, which is in high demand during the winter.
“And there’s also strong diesel demand in the Midwest during the fall leading into the winter because of the agricultural sector that is doing the harvesting,” Shore said.
Truckers and company owners want to know when and where relief could come from.
Shore said the future shows signs of the market loosening, but not until after the winter season ends. Sometime in 2008, the market capacity for domestic and foreign oil is expected to grow to relieve tight supplies.
“Now, exactly when things are going to ease and how they’re going to ease, nobody knows how to pick that time,” Shore said.
The national average on-highway diesel price increased 14.6 cents from $3.157 to $3.303 per gallon for the week. That average was up 79.7 cents from an early November one year ago.
A gallon of ultra-low sulfur diesel in California topped $3.508 per gallon following an increase of 11.8 cents, while ULSD in the West Coast region increased 10.9 cents to $3.514 per gallon.
The Rocky Mountain region averaged $3.413 per gallon, up 14 cents from $3.283.
The cheapest diesel average in the nation belonged to the Gulf Coast region where a gallon of ULSD averaged $3.224.
The Lower Atlantic region was next cheapest at $3.243 per gallon after a 14-cent increase from $3.103.
ULSD in the Midwest region averaged $3.291, up 15.4 cents from $3.137 per gallon.
The East Coast region averaged $3.299 for ULSD, up 13.6 cents, while ULSD in the New England region averaged $3.37.5 following an increase of 12.5 cents.
ULSD in the Central Atlantic region averaged $3.384, up 13.2 cents from the previous average of $3.252.