The average price of diesel decreased 10 cents last week to $2.515 per gallon, continuing a downward trend begun in mid-summer that is expected to last into 2009, according to Department of Energy (DOE) information.
Ultra low sulfur diesel followed a similar path last week and fell to just over 10 cents per gallon to $2.523.
DOE said in its monthly short-term energy report that the current global economic slowdown is now projected to be more severe and longer than projected last month. This means that the market is likely to see further reductions of global energy demand and additional declines in crude oil and other energy prices.
With the assumption of a fragile economy throughout 2009, along with lower projected crude oil prices, annual average retail diesel fuel prices in 2009 are projected to be $2.47 per gallon. The projected continuation of the decline in the consumption of diesel fuel in the United States, as well as a slowing of the growth in distillate fuel usage outside the United States, are expected to result in a weakening of refining margins, according to the DOE report.