WASHINGTON — Despite a tiny uptick in North American fuel prices this past week, costs will continue to fall in 2009, according to forecasts by the U.S. Energy Information Admin.

The agency, in its monthly Short-Term Energy Outlook released this week, says economic contraction and lower projected crude oil prices will mean retail diesel fuel will average $2.27 per gallon in 2009 and retail gasoline prices will average $1.87.

World oil consumption continues to be revised downward in response to the global economic downturn. Global consumption is estimated to have been largely unchanged in 2008 and is projected to fall by 800,000 barrels per day in 2009, says the EIA.

Consumption is expected to record a modest rebound in 2010, rising by 880,000 barrels per day from year-earlier levels, on the assumption of the beginning of an expected recovery in global economic growth.

Oil prices have fallen from record highs of about $150 to below $40 per barrel in about six months. Prices are expected to average $43.25 per barrel in 2009 and $54.50 per barrel in 2010.

EIA notes that OPEC’s December announcement that it would cut crude oil production again, following its earlier cut in November, has not yet led to a substantial increase in oil prices.

On-highway diesel fuel retail prices, which averaged $3.79 per gallon in 2008, are projected to average $2.27 per gallon in 2009 and $2.54 in 2010.

— via Truckinginfo.com