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Diesel drops 11.5 cents in one week; likely to rise again

The national average price for diesel fell 11.5 cents to $2.732 per gallon for the week ending Sept. 19, according to the U.S. Energy Information Agency.

That price is still 82 cents higher than prices for the same week in 2004.

The highest prices were in California , topping off at an average of $3.060 per gallon, though even that was down 9.8 cents from the previous week. The rest of the West Coast was close behind at $2.98 per gallon.

The biggest drop, surprisingly, was along the Gulf Coast , where prices fell 12 cents to $2.677 per gallon.

The East Coast also saw a double-digit drop, falling 10 cents to $2.749 per gallon. The highest prices in that part of the country were found in the Central Atlantic states, with an average of $2.846 per gallon. New England and the lower Atlantic states were significantly lower, at $2.804 and $2.702 per gallon, respectively.

The lowest prices were found in the Midwest , which posted an average of $2.648 per gallon. The Rocky Mountain region remained high at $2.902 per gallon.

Meanwhile, crude oil prices fell in trading on the New York Mercantile Exchange on Tuesday, Sept. 20. Prices dropped close to the $65 per barrel mark in midday trading after surging past $67 on Monday.

The Associated Press reported that the price drop was due in part to the Organization of Petroleum Exporting Countries announcing that it would make 2 million extra barrels of oil a day available to help calm uneasy oil markets.

However, that drop may be short-lived, as Hurricane Rita makes its way into the Gulf of Mexico , providing a further threat to an oil industry still trying to get back on its feet following Hurricane Katrina.

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