By Mark Shenk
Dec. 11 (Bloomberg) -- The U.S. government increased its estimate for crude-oil prices this year and in 2008, citing consumption that exceeds output by non-OPEC producers.
West Texas Intermediate crude oil, the U.S. benchmark, will average $72.05 a barrel this year, the Energy Department said in its monthly Short-Term Energy Outlook. The forecast is up 1 percent from $71.36 estimated last month. Oil will average $84.83 in 2008, up 6.1 percent from $79.92 in last month's forecast.
Homeowners in the U.S. can expect to pay an average 33 percent more for heating oil this winter than they did a year earlier, as higher crude prices are passed along, according to the report. Costs will average $1,955 this winter, up from $1,841 estimated a month ago. The fuel heats about one-third of homes in the Northeast.
The 10 members of the Organization of Petroleum Exporting Countries that have production quotas have raised output by 0.7 percent this year, Bloomberg News estimates show.
To contact the reporters on this story: Mark Shenk in New York at mshenk1@bloomberg.net.
Last Updated: December 11, 2007 10:56 EST
HOME
