US govt lowers summer gasoline pump price forecast
WASHINGTON, June 7 (Reuters) - The U.S. government on
Friday lowered its estimate for average gasoline prices this
summer, predicting a gallon of motor fuel will cost 3 cents
less than previously thought and average $1.41 nationwide.
This would make gasoline prices this summer 13 cents lower
than last year and far from the weekly record high of $1.70 a
gallon reached in May 2000, the Energy Information
Administration said in its latest monthly short-term energy
forecast.
"High inventories of gasoline and record levels of imports
of this fuel are two primary factors keeping a lid on motor
gasoline prices this summer, even as consumption of gasoline
also reaches record levels," EIA said.
The latest U.S. weekly gasoline inventories totaled 216
million barrels, up 4 million barrels from a year ago. EIA said
it expects gasoline stocks to increase by another 2 million
barrels by the end of June.
The latest nationwide average price for regular unleaded
gasoline is $1.39 a gallon, up a half a penny from the prior
week.
The EIA warned that it was possible for pump prices to rise
a bit over the summer, as crude oil prices are expected to
remain strong and the demand for gasoline is likely to increase
over the next several months.
Pump prices also could spike in different regions of the
country if there was a major refinery or pipeline problem, it
said.
EIA said gasoline demand should average about 8.88 million
barrels per day (bpd) during the July-September period, 10,000
bpd more than it had previously forecast.
Crude oil costs account for about 44 percent of the price
for a gallon of gasoline.
((Tom Doggett, Washington Energy Desk, 202-898-8320))
REUTERS
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