Diesel ends 15 straight weeks of increases   

Weekly retail on-highway U.S. diesel prices eased by one-tenth of one cent to $3.907 per gallon This follows a remarkable 15 straight weeks of increasing prices that saw diesel rise from $3.162 on November 29 to $3.908 last week. Diesel prices have risen 93% since bottoming out at $2.023 on March 16, 2009. More recently, diesel is up 32% since late September, when the price was $2.951 per gallon. A view of weekly prices over the last 3 years is ominous, as 2011 is starting off with much higher prices than seen in 2009 or 2010 (second graph). With the economy showing glimmers of hope and the Fed intent on a weak dollar to support exports, a return to 2008 diesel fuel prices is looking much more likely. Diesel prices peaked at $4.764 per gallon in July of 2008 and were above $3 per gallon from September 24, 2007 to November 3, 2008 (over 13 months) and have been back over $3 since October 4, 2010 (only 5 months).