From Staff & Wire Reports The U.S. Department Energy (DOE) has projected that high gasoline prices and $50-plus crude oil will continue at least through next year.
The government agency said it expects gas prices to average $2.35 a gallon nationwide by May. Guy Caruso, head of the DOE’s Energy Information Administration (EIA), said the forecast is for prices to average $2.28 a gallon through September. Prices will remain high well into 2006, he said, due to high crude-oil prices and growing demand. Crude prices will likely rise above $50 a barrel next year, he added.
EIA reported that gasoline demand for this summer is projected to be 9.3 million barrels a day, the highest demand on record. The agency also said that oil supply is below historic levels and that it expects it to stay that way through 2006.
Demand forecasts continue to increase, putting pressure on refineries to produce, according to John Felmy, chief economist for the American Petroleum Institute.
In a separate report, the International Monetary Fund predicted that global oil demand would increase 65 percent by 2030, to 139 million barrels a day.
Click here to view the rest of today’s headlines.