US Gasoline Prices to Average Near $3 in June, Up 20% Over 2017

Energy

Published: May 8, 2018 1:30 pm

Last Updated: January 11, 2020 11:55 pm

The U.S. Energy Information Administration (EIA) on Tuesday released its Short-Term Energy Outlook (STEO) for May EIA forecasting that the average price retail price for a gallon of regular gasoline will reach $2.90 a gallon for the April through September summer driving season this year. That’s 49 cents a gallon (20.3%) higher than the average for last year’s driving season and 17 cents a gallon higher than the projection in last month’s STEO. Monthly average gasoline prices are forecast to reach a summer peak of $2.97 a gallon in June, before falling to $2.86 in September.

EIA also is showing that U.S. crude oil production averaged 10.5 million barrels of crude oil a day in April, up by 120,000 barrels over March production.

For the full year, the EIA now forecasts an average per gallon price of $2.79 for regular gasoline and $2.76 a gallon for all grades. That’s a month-over-month forecast increase of 15 cents.

For all of 2018, the EIA estimates U.S. crude production will average 10.7 million barrels a day, up by 100,000 from the prior month estimate. For 2019, the EIA forecasts U.S. production to average 11.9 million barrels a day, up by 460,000 from the previous month’s estimate.

Non-OPEC liquids production is forecast to rise by about 2.5 million barrels a day to 61.23 million. Total world production is forecast at 100.45 million barrels a day, up from 98.01 million in 2017. Annual global consumption is forecast at 100.28 million barrels a day, up from 98.52 million last year.

West Texas Intermediate (WTI) crude oil prices are forecast to rise from an average of $50.79 a barrel in 2017 to $65.58 this year before moderating to $50.86 in 2019. Prices for Brent crude are forecast to be about $5 a barrel higher for both this year and next.

The STEO also notes that natural gas prices are expected to average $3.01 per million BTUs in 2018 and $3.11 in 2019, up month-over-month by two cents and four cents, respectively.

WTI crude oil for June delivery opened down about 0.8% Tuesday at $70.11 a barrel and recently traded down about 2.9% at $68.68. The January 2019 futures contract traded at $65.77, reflecting traders’ concerns that rising U.S. production will keep downward pressure on prices well into the future.

24/7 Wall St.
4 Must-Buy Energy Stocks as Oil Surges Over $70 a Barrel

Travel Cards Are Getting Too Good To Ignore (sponsored)

Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.

We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.

It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.

We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.