EIA Lowers Projections for Gasoline and Oil Prices
May 18, 2005
A break in near-term oil prices is expected to yield a slight savings at the pump this summer, according to the latest projections from DOE's Energy Information Administration (EIA). The EIA's "Short-Term Energy Outlook," released on May 10th, projects average summer gasoline prices of $2.17 per gallon, still high by historical standards but well below the $2.28 per gallon anticipated last month. The EIA lowered its projection as oil prices fell from nearly $60 a barrel to close to $50 a barrel, largely because increased oil production has boosted crude oil inventories in the United States. Crude oil prices are now expected to average $51 per barrel for the second quarter of 2005, roughly $6 per barrel lower than projected in last month's Outlook. However, global oil markets remain tight, and the EIA still expects oil prices to average above $50 per barrel through the end of 2006. See the EIA's "Short-Term Energy Outlook," and for the latest oil and gasoline prices, see the New York Mercantile Exchange and the American Automobile Association's "Fuel Gage Report."