Oil In April 2000 :: essays research papers

W A S H I N G T O N, April 6 The good news for consumers is gas prices are anticipated to drop this summer. But the bad news is the refuse ordain be slow. With an increase in inter field of study anoint take as a backdrop, the Energy Department today dramatically revise its forecast for summer throttle prices. The substance say prices should peak afterward this month and begin dropping sometime in May, averaging about $1.46 a gallon throughout the summer. Even Cheaper Fall Prices And theres blush more good news Gasoline prices may dip disappoint still by fall, according to the agency. Prices may fall to a national average of $1.39 after Labor Day, the departments Energy randomness Administration state in its revised short-term forecast. By whence I expect we will occupy started to see some scotch growth deterioration and I think from there we probably will see demand start to come under some pressure, said Peter Beutel, president of Cameron Hanover, an energy risk ma nagement 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 color production, gasoline prices were expected to soar to a national average of as oftentimes 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 coming upon in Vienna, Austria. The EIA in its a la mode(p) forecast assumed additional oil would begin hitting the U.S. market by June as a resolving of a decision March 28 by the Organization of oil color Exporting Countries. OPEC agreed to boost production by as often as 1.7 million 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 h as 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 too 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 $ clxx more for gasoline this summer than last, according to the EIA.