The price of on-highway diesel fuel continued to push higher last week, though the national average price increase of 2.7 cents was modest compared to the previous week's 10-cent jump. The national average price is currently $1.031 higher, or 33.5 percent, than this time last year.
New England experienced the highest regional increase at 5.8 cents, and California still led national prices $4.44 per gallon - the national average price was $4.105. Gasoline also topped $4 per gallon in six states.
Crude oil, however, continued declining. On Monday this week, benchmark West Texas Intermediate crude fell $2.54, or 2.3 percent, to settle at $107.12 per barrel on the New York Mercantile Exchange. The drop came after Standard & Poor's lowered its long-term outlook for U.S. debt for the first time since Pearl Harbor, raising concerns about the economy and expectations of cuts in government spending.
"If the U.S. doesn't get its budget under control, we'll need to raise interest rates," said Phil Flynn, an energy analyst with PFGBest. Higher interest rates will make it tougher for consumers and businesses to raise money. That will slow down the economy and dampen energy demand, Flynn said.
The price of oil was also undercut by the international community. OPEC officials said on Sunday that the market is oversupplied with crude and the recent surge in oil prices could drag down the global economic recovery. Saudi Arabia's oil minister said his country cut oil production in March, but will probably raise it again this month. China's Central Bank raised reserve requirements for the fourth time this year in an attempt to control inflation. The move will make it harder for consumers and businesses to raise money.
New England experienced the highest regional increase at 5.8 cents, and California still led national prices $4.44 per gallon - the national average price was $4.105. Gasoline also topped $4 per gallon in six states.
Crude oil, however, continued declining. On Monday this week, benchmark West Texas Intermediate crude fell $2.54, or 2.3 percent, to settle at $107.12 per barrel on the New York Mercantile Exchange. The drop came after Standard & Poor's lowered its long-term outlook for U.S. debt for the first time since Pearl Harbor, raising concerns about the economy and expectations of cuts in government spending.
"If the U.S. doesn't get its budget under control, we'll need to raise interest rates," said Phil Flynn, an energy analyst with PFGBest. Higher interest rates will make it tougher for consumers and businesses to raise money. That will slow down the economy and dampen energy demand, Flynn said.
The price of oil was also undercut by the international community. OPEC officials said on Sunday that the market is oversupplied with crude and the recent surge in oil prices could drag down the global economic recovery. Saudi Arabia's oil minister said his country cut oil production in March, but will probably raise it again this month. China's Central Bank raised reserve requirements for the fourth time this year in an attempt to control inflation. The move will make it harder for consumers and businesses to raise money.
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