The U.S. Energy Department has issued new forecasts for diesel and gasoline prices.
According to its latest Short-Term Energy Outlook, diesel fuel prices, which averaged $3.92 per gallon in 2013, are projected to average $3.90 per gallon in 2014 and $3.78 per gallon in 2015. The current weekly average cost is $3.892, 4.3 cents higher than the same time last year.
In the second quarter of the year diesel is expected to average $3.94 per gallon, $3.86 in the third quarter and $3.84 in the final quarter.
Led by falling crude oil prices, the projected U.S. annual average regular gasoline retail price, which fell from $3.63 per gallon in 2012 to an average of $3.51 per gallon in 2013, will continue to fall to $3.50 per gallon in 2014 and $3.38 in 2015.
The department expects that the monthly average regular gasoline retail price has peaked at $3.67 per gallon in May and will fall to $3.54 per gallon in September.
U.S. total crude oil production, which averaged 7.4 million barrels per day in 2013, is expected to average 8.4 million in 2014 and 9.3 million in 2015, according to the department. The 2015 forecast represents the highest annual average level of oil production since 1972.
The full report is available from the U.S DOE's Energy Information Administration.