Oil prices continue to drop

| Monday, June 27, 2011

At least for the short term, the White House strategy to tap the Strategic Petroleum Reserve to keep energy prices down appears to be working. Oil prices on the New York Mercantile Exchange had dipped below $90 per barrel briefly on Monday, June 27, before returning to $90.

In separate but related news, diesel prices are also experiencing a downward trend.

The national average price for on-highway diesel fell more than 6 cents during the past week to $3.888 per gallon, according to the U.S. Energy Information Administration. That’s much lower than the high in early May of $4.12 per gallon.

By state, California made the biggest move with a 9-cent drop in diesel to $4.146 per gallon. West Coast region states averaged an 8.7-cent decrease for the week.

Following are the EIA’s averages for the week, plus activity:

U.S. – $3.888, down 6.2 cents
East Coast – $3.914, down 4.8 cents
New England – $4.038, down 3.9 cents
Central Atlantic – $4.014, down 6 cents
Lower Atlantic – $3.860, down 4.4 cents
Midwest – $3.842, down 6.2 cents
Gulf Coast – $3.834, down 6.2 cents
Rocky Mountain – $3.885, down 7.4 cents
West Coast – $4.069, down 8.7 cents
California – $4.146, down 9 cents

Daily tracking site ProMiles reports that just seven states were averaging above the $4 mark on Monday compared to the vast majority of states just a few weeks ago. The cheapest tax-included average is in Mississippi at $3.730 per gallon, followed by South Carolina at $3.734.

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