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No Relief in Sight for High Gas Prices, Says U.S. DOE

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.

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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.

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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.

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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.

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