Diesel prices drop for fourth straight week, reports EIA

The Department of Energy’s Energy Information Administration (EIA) reported this week that the average price per gallon of diesel gasoline dropped for the fourth straight week, with a 0.4 cent decline to $2.558 per gallon.

This follows declines of 0.7 cents, 1.6 cents, and 1.2 cents, respectively, over the previous three weeks.

The last four weeks of declines were preceded by gains over the previous six weeks, with the average price per gallon increasing a cumulative 17.7 cents from the week of November 28 to the week of January 9.

The average price per barrel of West Texas Intermediate Crude is at $52.27 on the New York Mercantile Exchange.

A recent Reuters report said that oil prices were steady as news of lower production by OPEC and other key exporters was balanced by reports of more drilling and higher output in the United States. And it added that U.S. oil production has risen by more than 6 percent since mid-2016, though it remains 7 percent below the 2015 peak. It is back to levels reached in late 2014, when strong U.S. crude output contributed to a crash in oil prices.

In its most recent Short-Term Energy Outlook, the EIA is calling for diesel prices to average out at $2.73 in 2017 and $2.84 in 2018, with WTI crude oil pegged at $52.50 per barrel in 2017 and $55.18 in 2018.