Uncle Sam’s energy wizards have done what some may have said is a predictable backstep. We reported earlier that the ‘petrol prognosticators’ had gazed in their crystal barrels and pointed to an average figure for diesel of $3.62 for the year and a $3.36 guestimate for gasoline. Oh, that those figures might have been right. Now the DOE (Department of Energy) says that the better estimates are $3.94 and $3.52.

The projected increase “reflects global strength in diesel demand that is contributing to a widening of the margin between diesel prices and crude oil costs since last year,” DOE said in its monthly short-term energy forecast released Tuesday.  In an odd twist, the DOE also announced that the average price of diesel dropped last week–the first fall in a month.  The average dropped almost 3 cents per gallon, with the national average of $4.149 per gallon.

Looking out the window at truckstop billboards, one would have to opine that if the DOE boys are going to be correct, then prices will have to start falling soon. Amen, Brother.

This entry was posted on Thursday, May 8th, 2008 at 3:14 pm and is filed under diesel, fuel prices, gas prices, general. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.