Tumbling crude oil might reduce U.S. summer gasoline prices by 25 cents a gallon, the Energy Information Administration said today.
“If you asked us for our projection of summer gasoline prices next month, I know it will be lower than what we published in the May outlook,” Howard Gruenspecht, EIA’s deputy administrator, said in Washington today. “You might drop 25 cents a gallon off of that price,” he said.
The EIA’s May 11 Short-Term Energy Outlook predicted gasoline to average $2.94 a gallon during the U.S. April-to-September summer driving season. That outlook assumed average crude oil prices of $84 a barrel for the rest of the year. Oil fell $1.91 today, or 2.7 percent, to $68.30 at 12:42 p.m. on the New York Mercantile Exchange. Oil is down 21 percent this month.