EIA: Gasoline Prices to Drop More Despite Record Oil Prices
August 8, 2007
Crude oil prices are near their record highs and are expected to peak in August, according to DOE's Energy Information Administration (EIA). The EIA's "Short-Term Energy Outlook," released on August 7th, expects U.S. refiners to pay an average of $73.50 per barrel during August, compared to only $61.60 per barrel in May. Despite the increasing price of oil going into the refineries, the price of gasoline at the pump is dropping, and that decline is expected to continue through the end of the year. After peaking at record prices of $3.22 per gallon on May 21st, the average retail price for regular unleaded gasoline fell by almost 40 cents per gallon as of Monday, thanks to increased production at U.S. refineries. The EIA expects regular unleaded gasoline to average $2.64 per gallon come December. See the EIA's "Short-Term Energy Outlook" and the latest prices from AAA's Daily Fuel Gauge Report.
Crude oil prices set a number of records in late July, with the highest prices achieved in the spot market for Brent crude oil. According to EIA's "This Week in Petroleum," the spot prices for Brent crude peaked at $79.09 per barrel in late July. See the crude oil trends on the EIA Web site.