WASHINGTON, D.C. -- Federal energy forecasters don't foresee high summer gasoline prices this year -- providing there are no unexpected glitches in oil supplies.
The U.S. Energy Information Administration's annual summer fuels outlook pegs the national average price for gasoline at $3.57 per gallon from April through September. That's a penny per gallon less than last year's average for the same period.
The national average price of gasoline Tuesday is $3.57 a gallon, according to GasBuddy, the web-based price watchdog. GasBuddy puts Cleveland's average price at $3.66, the lowest average among major Midwestern cities. Chicago posted the highest average price at $4.06 a gallon.
Temporary bottlenecks in ethanol supplies are partly to blame for the overall price increases in the Midwest, said Patrick DeHaan, GasBuddy senior petroleum analyst.
The EIA's five-month averages don't rule out temporary May spikes when annual refinery shutdowns for maintenance coincide with increases in gasoline demand.
Growing U.S. crude oil production is one of the reasons gasoline prices are expected to level off.
The EIA expects crude oil flowing from shale wells to reach 8.4 million barrels per day this year, up from 7.4 million barrels per day in 2013. The agency is forecasting that crude production will increase to about 9.1 million barrels per day in 2015 - just shy of the record 9.6 million barrels per day set in 1970.
The EIA expects Americans to drive more this summer than last, but projects that efficiency gains of newer vehicles will offset the increase.
For the year, the agency sees gasoline prices averaging $3.45 a gallon and dropping to $3.37 in 2015.
By Cleverland Business
