The U.S. average retail price of diesel was unchanged the week of Jan. 28 at $2.965 a gallon and now is about 10 cents a gallon cheaper than it was a year ago, according to the U.S. Energy Information Administration.
Diesel prices have been falling steadily since reaching a peak of $3.395 a gallon during the week of Oct. 8, as plentiful supplies of crude oil and concern about weakening economic growth has kept a lid on prices worldwide.
The average price increased in three regions — East Coast, Central Atlantic and Lower Atlantic — and dropped in the others. The average national price had dropped for 14 consecutive weeks before this.
The national average price of gasoline increase 0.5 cent, to $2.256 from $2.251.
In its latest energy forecast, EIA said it expects a gradual increase in crude oil prices over the next two years, with the benchmark Brent crude oil averaging $61 a barrel in 2019 and $65 in 2020. That compares with a $71 a barrel average in 2018.
With each barrel of crude oil holding 42 gallons, an increase of $1 a barrel contributes to an average 2.4-cent increase in the price of refined petroleum products, EIA said.
EIA also said it expects the United States and other countries that are not part of the Organization of Petroleum Exporting Countries to supply 2.4 million barrels per day of additional oil supplies this year — enough to offset projected declines from OPEC members.
In 2020, EIA expects oil production to increase by 1.7 million barrels per day, with increased output from the United States, Canada, Brazil and Russia, while overall OPEC production is expected to remain flat. Global demand for oil is forecast to increase by 1.5 million barrels per day in 2019 and 2020, EIA said.