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

July 14, 2004

EIA: Gasoline and Oil Prices will Stay High Through 2005

Gasoline and crude oil prices have dropped from their spring peaks, but DOE's Energy Information Administration (EIA) doesn't see prices dropping further anytime soon. According to the EIA's "Short-Term Energy Outlook," released on July 7th, a combination of low oil inventories and increasing demand is likely to keep crude oil prices near their current levels through 2005. The EIA currently projects oil prices to average $37 per barrel in the third quarter of this year, about $1 per barrel higher than last month's projection. Summer gasoline prices are expected to average $1.89 per gallon, 2 cents lower than last month's projection, but the EIA expects gasoline prices to stay at $1.83 per gallon through 2005. See the EIA's Short-Term Energy Outlook.