Average Diesel Cost Down for Second Straight Week, Oil Slightly Higher

UPDATED -- The average cost of diesel has trickled down for a second straight week, according to new figures from the U.S. Energy Department.

It clocked in this week at $3.871 per gallon, down 0.8 cents from a week ago and 1.2 cents lower than two week ago. Compared to the same time a year ago, diesel 7.4 cents per gallon lower. Since the beginning of September, the average cost of diesel has posted weekly increases only two times and been unchanged twice.

Prices fell in all parts of the country except for a majority of the East Coast region, along with the Rocky Mountain and West Coast regions.

The biggest hike was in the Central Atlantic sub region of the East Coast, where it picked up 0.5 cents, for an average of $3.977 per gallon, while the greatest drop was in the Midwest, down 1.8 cents, to $3.852.

Prices range from a high of $4.064 in the New England sub region of the East Coast, down 0.2 cents from last week, to a low of $3.766 in the Gulf Coast region, down 0.7 cents during the same time.

Meantime, the average cost of gasoline fell for the third consecutive week, shedding 3 cents over the past week, for $3.239 per gallon.

The only price increases were in the New England and Central Atlantic sub regions of the East Coast region, picking up 1.4 cents and 1 cent, respectively, with New England having the highest price of any part of the country at $3.508.

The least expensive region for gasoline is the Gulf Coast, at $3.047, down 5.7 cents.

The price of oil on Monday gained 88 cents in New York trading, settling at $97.48 per barrel, up 63 cents over the past week, due to a drop in U.S. crude inventories.

Investors reportedly weighed positive economic reports here at home and from abroad, along with waiting for a Federal Reserve policy meeting that begins Tuesday, in which the central bank could move to curtail its economic stimulus program

This also happened as a new U.S. Energy Department report released Monday showing U.S. oil production is expected to hit its record high of 9.6 million barrels per day by 2016. The last time this happened was in 1970. 

Update adds gasoline prices.