EIA raises US summer gasoline price forecast to $2.88/gal

Washington (Platts)--11Jul2006

The US Energy Information Administration Tuesday hiked its forecast for
the average US summer regular-grade gasoline price to $2.88/gal, which
includes a 23-cent increase in the agency's forecast for third-quarter prices.

EIA, in its Short Term Energy Outlook for July, said it now expects
third-quarter 2006 pump prices to average $2.92/gal, compared with its
forecast in June of $2.69/gal.

If the forecast holds, third-quarter prices this year would be 37 cents
higher than the same quarter of last year, which included dramatic price
spikes associated with hurricanes Katrina and Rita.

In the past few weeks, gasoline prices have surged. As of Monday,
regular-grade pump prices averaged $2.937/gal, some 65 cents/gal higher than
the average price reported by EIA a year ago.

US gasoline demand should average 9.39 million b/d in the third quarter,
EIA added, which is down slightly from its forecast in June of 9.4 million
b/d. Still, motor gasoline demand is projected to grow 0.7% in 2006 and 1% in
2007, after almost no growth in 2005, said EIA, the statistical arm of the US
Energy Department.

The demand growth forecast reflects an anticipated continuation in US
economic growth and a stabilization of future motor gasoline prices, EIA said.

--Cathy Landry, cathy_landry@platts.com

For more news, request a free trial to Platts Oilgram News at
http://oilgramnews.platts.com or subscribe now at
http://www.platts.com/infostore/product_info.php?cPath=1_29&products_id=29


 

Copyright © 2005 - Platts

Please visit:  www.platts.com

Their coverage of energy matters is extensive!!.