Diesel to Remain Higher Than Gasoline Into 2006, DOE Says
verage retail diesel prices are expected to remain above regular gasoline prices through 2006, the Department of Energy said in its monthly Short-Term Energy Outlook released Tuesday.
The projected average price for retail diesel this summer is $2.22 per gallon, up about 45 cents from last summer, DOE said. That's about a cent below the most recent national average price of $2.234 reported by DOE in its weekly survey on Monday.
Diesel’s all-time record high of $2.316 a gallon was set April 11.
Distillate demand, which includes diesel and heating oil, is projected to climb by an average of 1.9% in 2005 and 2006, which EIA described as "steady growth but well below the average rate of 3.3% recorded for 2004."
Retail gasoline national average prices are projected to be $2.17 a gallon from April through September, unchanged from last month’s forecast, EIA said.
EIA raised its estimate of crude oil prices this year by 1.8% to an average of $52.30 a barrel primarily due to continued high global demand. It boosted its price outlook for benchmark West Texas Intermediate crude oil from the $51.36 a barrel it estimated in May.
Oil will average $52.83 a barrel in the third quarter, a 1.6% increase from last month’s forecast. The 2006 price will average $54.23, a 3.8% rise from its previous forecast, EIA said.
While EIA said demand growth is projected to remain strong this year and into 2006, it said it would not be as strong as last year, despite the projected high prices.
Worldwide oil demand was projected to grow at 2.1 million barrels a day in 2005 and 2006 — a 2.5% annual average growth rate, compared with 3.2 percent growth in 2004.
