US EIA projects 16 cent/gal decrease in gasoline prices this summer

07 May 2013 18:49  [Source: ICIS news]

HOUSTON (ICIS)--The average price for a gallon of gasoline in the US should be $3.53 (€2.68) for April-September, 16 cents less than at the same time in 2012, the Energy Information Administration (EIA) said on Tuesday.

Diesel prices are projected to average $3.88/gal for April-September, the EIA said in its short-term energy outlook (STEO).

US gasoline prices averaged $3.69/gal last summer, while diesel averaged $3.95/gal.

Looking further ahead, the EIA is projecting a 2013 average price for gasoline at $3.50/gal and a 2014 average price of $3.39/gal. The agency forecasts diesel to average $3.92/gal this year and $3.79/gal in 2014.

In the spot crude oil markets, the EIA is projecting West Texas Intermediate (WTI) to average $93.17/bbl for 2013 and $92.25/bbl for 2014.

The agency is expecting a larger price decrease for Brent crude – and thus a decrease in the spread between the two global market crudes – with Brent forecast to average $105.89/bbl in 2013 and $100.75/bbl in 2014.

The tightening of the spread is due to several pipeline projects expected to come on line in 2014 that should reduce the cost of transporting crude oil to Gulf Coast refiners, the EIA said.

US Henry Hub natural gas prices are forecast to average $3.80/MMbtu in 2013 and $4.00/MMbtu in 2014, the agency said.

($1 = €0.76)

By: Jeremy Pafford
+1 713 525 2653

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