Oil In April 2000 :: essays research papers

W A S H I N G T O N, April 6 The dangerous news for consumers is gas prices are pass judgment to drop this summer. But the bad news is the decline will be slow. With an cast up in international oil production as a backdrop, the Energy plane section today dramatically revised its forecast for summer gasoline prices. The agency give tongue to prices should peak later this month and perplex dropping sometime in May, averaging about $1.46 a gallon end-to-end the summer. Even Cheaper Fall Prices And theres correct more(prenominal) good news Gasoline prices may dip lower calm by fall, according to the agency. Prices may fall to a national medium of $1.39 afterward Labor Day, the departments Energy Information Administration said in its revised short-term forecast. By whence I dribble we will have started to see some economic growth alloy and I presuppose from there we probably will see charter start to come under some pressure, said Peter Beutel, chairman of Cameron Ha nover, an energy risk management firm in Connecticut. So, I think we probably will see prices closer to $1.30 or maybe even $1.25. What Happened to the $2 Estimate? Just a month ago, the Energy Department said even with increased oil production, gasoline prices were expected to soar upwards to a national bonnie of as much as $1.80 a gallon and likely reach $2 a gallon in some places by July. So whats changed between now and then? A key international oil meeting in Vienna, Austria. The EIA in its latest forecast assumed additional oil would begin strike the U.S. market by June as a result of a finale March 28 by the Organization of Petroleum Exporting Countries. OPEC hold to boost production by as much as 1.7 one thousand thousand barrels a day. Other non-OPEC producers also have said they would increase production. And production increases mean refilled petroleum stocks and lower prices for oil products including gasoline. We are more optimistic today. Some of the tightening of the market has improved, said EIA Administrator Jay Hakes. Nationally, the average cost of regular grade gasoline was $1.52 a gallon in March, with the average for all grades, including premium, a nickel higher, the agency said. Revisions Still 25 Percent Higher But dont get as well excited just yet. The agencys latest revision is still 25 percent higher than summer prices a year ago. The average motorist is expected to pay about $170 more for gasoline this summer than last, according to the EIA.