Feds predict diesel will average $4.24 this summer

By David Tanner, Land Line associate editor | 4/10/2012

The U.S. Energy Information Administration predicts that diesel fuel will average about $4.24 per gallon in the peak summer season before tapering off later in the year.

According to the agency’s latest Short-Term Energy Outlook, published Tuesday, April 10, diesel is likely to average $4.22 in July, $4.25 in August and $4.23 in September.

By December, the average is likely to be about $4.18, leading to an average if $4.15 for the calendar year. The $4.15 prediction for the year is unchanged from the March edition of the Outlook.

Analysts stated in the report that prices are likely to vary significantly depending on the region. The EIA collects and reports data from nine regions.

“Daily and weekly national average prices can differ significantly from monthly and seasonal averages, and there are also significant differences across regions, with monthly average prices in some areas exceeding the national average price by 25 cents per gallon or more,” EIA analysts stated.

The price of gasoline, according to the agency, will rise to $4.01 in May before easing to $3.67 by December for a calendar-year average of $3.81.

The EIA is also offering predictions about oil prices. According to the April edition of Outlook, crude oil will average $105.72 per barrel in 2012, about the same as the agency predicted last month. The agency also expects oil prices to remain flat around $105.75 per barrel in 2013.

Analysts make their projections from data that include supply and demand, other energy prices, seasonal weather patterns, and happenings in the marketplace that affect trading.

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