http://story.news.yahoo.com/news?tmpl=story&u=/ap/20050407/ap_on_go_ca_st_pe/costly_gas
U.S. Agency Forecasts Higher Gas Prices
2 hours, 44 minutes ago
By H. JOSEF HEBERT, Associated Press Writer
WASHINGTON - While gasoline costs have reached record levels, prices at the pump are forecast to go even higher in coming weeks because of growing demand, government forecasters said Thursday.
http://us.news1.yimg.com/us.yimg.com/p/ap/20050406/thumb.caps10104062024.oil_prices_caps101.jpg
The Energy Information Administration projected that average gasoline prices will peak at $2.35 a gallon in May. Motorists paid an average of $2.22 a gallon last week.
The statistical agency said that despite soaring costs at the pump, motorists are not easing off the roads. It projected demand for gasoline this summer at 9.3 million barrels a day, a 1.8 percent increase over last summer.
On average, regular grade gasoline is expected to cost $2.28 per gallon nationwide during the April through September period, said the EIA. Costs vary widely by region with gasoline in the West often 18 to 25 cents higher than the national average.
The upward pressure on gasoline prices stems largely from the high cost of crude oil, limited refining capacity and an energy market worried whether global oil production will be able to keep pace with growing demand, said EIA Administrator Guy Caruso.
Those concerns are expected to keep both crude and gasoline prices high through next year, the agency said.
Crude oil prices soared to more than $58 a barrel earlier this week, declining somewhat since then.
Also contributing upward pressure on gas prices are tight inventories of both crude and gasoline. The EIA reported on Wednesday a decline in the supply of unleaded gasoline by 2.1 million barrels last week, while demand was up 2 percent from a year ago.
"We're importing record amounts of gasoline and diesel," said Caruso, adding that demand is pushing up prices. "We've had strong demand in 2004 and again in 2005."
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On the Net:
Energy Information Administration: www.eia.doe.gov
U.S. Agency Forecasts Higher Gas Prices
2 hours, 44 minutes ago
By H. JOSEF HEBERT, Associated Press Writer
WASHINGTON - While gasoline costs have reached record levels, prices at the pump are forecast to go even higher in coming weeks because of growing demand, government forecasters said Thursday.
http://us.news1.yimg.com/us.yimg.com/p/ap/20050406/thumb.caps10104062024.oil_prices_caps101.jpg
The Energy Information Administration projected that average gasoline prices will peak at $2.35 a gallon in May. Motorists paid an average of $2.22 a gallon last week.
The statistical agency said that despite soaring costs at the pump, motorists are not easing off the roads. It projected demand for gasoline this summer at 9.3 million barrels a day, a 1.8 percent increase over last summer.
On average, regular grade gasoline is expected to cost $2.28 per gallon nationwide during the April through September period, said the EIA. Costs vary widely by region with gasoline in the West often 18 to 25 cents higher than the national average.
The upward pressure on gasoline prices stems largely from the high cost of crude oil, limited refining capacity and an energy market worried whether global oil production will be able to keep pace with growing demand, said EIA Administrator Guy Caruso.
Those concerns are expected to keep both crude and gasoline prices high through next year, the agency said.
Crude oil prices soared to more than $58 a barrel earlier this week, declining somewhat since then.
Also contributing upward pressure on gas prices are tight inventories of both crude and gasoline. The EIA reported on Wednesday a decline in the supply of unleaded gasoline by 2.1 million barrels last week, while demand was up 2 percent from a year ago.
"We're importing record amounts of gasoline and diesel," said Caruso, adding that demand is pushing up prices. "We've had strong demand in 2004 and again in 2005."
__
On the Net:
Energy Information Administration: www.eia.doe.gov
