Modest Fuel-Price Increases This Year

March 9, 2010 06:00 PM
 

Linda H. Smith, Top Producer Business and Marketing Editor
 
U.S. real gross domestic product (GDP) is projected a 2.8% and world oil-consumption-weighted real GDP by 3.4%. As a result, global liquid fuels consumption growth is adjusted upward by 0.3 million barrels a day, to 1.5 million barrels per day.
 
This increased growth in 2010 oil consumption supports a firming of crude oil prices to above $80 per barrel this sprint and about $82 by the end of the year. We'll also see a further drawdown of commercial oil inventories, according to EIA.
 
Expect the annual average regular-grade retail gasoline price to increase from $2.35/gal. in 2009 to $2.84 in 2010 and $2.96 in 2011. "Average U.S. pump prices likely will exceed $3 per gallon at times during the forthcoming spring and summer driving season,” says Richard Newell, EIA administrator.
 
Projected annual average retail diesel fuel prices are $2.96 and $3.14 per gallon, respectively, in 2010 and 2011.
 
 
For the full report: Short-Term Energy Outlook  
 

 
You can e-mail Linda Smith at lsmith@farmjournal.com.
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