EIA raises crude oil, gasoline price forecasts for 2018

U.S. Energy Information Administration -------- EIA’s May Short-Term Energy Outlook (STEO) forecasts that Brent crude oil prices will average $71 per barrel (b) in 2018, $7/b higher than last month’s STEO. Correspondingly, EIA’s forecast for regular gasoline retail prices increased to an average of $2.79/gallon (g) in 2018, $0.15/g higher that in last month’s STEO. Monthly average Brent crude oil spot prices have increased in 9 of the past 10 months, most recently averaging $72/b in April. EIA expects West Texas Intermediate (WTI) crude oil prices to average $5/b lower than Brent prices in 2018. Even though WTI is a domestic crude benchmark and Brent is an international benchmark, gasoline prices in the United States tend to follow Brent. In late April 2018, daily spot prices for Brent crude oil reached $76/b, the highest level in nearly four years. To learn more click on the picture below to read the article.