DOE Lowers ’08 Diesel Forecast to $4.09 a Gallon

Diesel fuel will average $4.09 this year, down 9 cents from a previous forecast, the Department of Energy said.

Last month, DOE said trucking’s main fuel would average $4.18 a gallon this year and $4.27 next year. The new forecast for a 2009 average price was trimmed by a penny, to $4.26 a gallon.

“Diesel prices reflect continuing strength in demand, particularly in emerging global markets, which has significantly increased the margins between diesel prices and crude oil costs from their 2007 level,” DOE said in its monthly short-term energy forecast.

Gasoline will average $3.61 a gallon, down 4 cents from a previous forecast but 80 cents over last year’s $2.81 average. Next year, gasoline will average $3.88, DOE said.

Crude oil, which averaged $72 a barrel in 2007, will average $116 per barrel this year and $126 in 2009, DOE said, about in line with last month’s forecast.