This is an excerpt from EERE Network News, a weekly electronic newsletter.

May 19, 2004

EIA Expects Summer Gasoline Prices to Average $1.94

The outlook for summer gasoline prices worsened in early May, as DOE's Energy Information Administration (EIA) projected the average U.S. price for a gallon of regular gasoline at about $1.94 this summer. That's 18 cents higher than the EIA projected a month ago, reflecting increased pressures on the oil market. The EIA expects average U.S. gasoline prices to peak at $2.03 in June. Spot prices for crude oil averaged about $36.70 per barrel in April, and the EIA expected them to average $36 to $37 per barrel for the rest of the year. See the May 11th edition of EIA's "Short-Term Energy Outlook."

Unfortunately, EIA's report is already looking a bit optimistic. According to Platts, June crude oil futures (the benchmark price for crude oil), hit $41.38 per barrel on May 14th. See the Platts oil price chart, and for the latest crude oil prices, see the New York Mercantile Exchange Web site.