The U.S. Energy Information Administration (EIA) forecasts an increase in demand for petroleum products during the 2021 summer driving season as the impacts of COVID-19 diminish in the United States.
EIA’s annual Summer Fuels Outlook, released today with EIA’s Short-Term Energy Outlook (STEO), expects a 15% increase in U.S. highway travel this summer but still less highway travel than in the summer of 2019.
EIA also forecasts the Brent crude oil price will average $64 per barrel this summer, a 78% increase from last summer’s average of $36 per barrel. That price increase paired with an increase in gasoline and diesel demand will likely increase the cost of regular gasoline and diesel fuel this summer.
EIA expects the retail price of regular-grade gasoline in the United States will average $2.78 per gallon (gal) this summer, compared with last summer’s average of $2.07/gal. For diesel fuel, EIA expects retail prices to average $2.91/gal this summer, up from an average of $2.43/gal last summer.
OK Energy Today reported this week’s gasoline prices average $2.62 in Oklahoma, down two cents from a week earlier and still 7 cents more than a month ago. The $2.62 compared to the national average of $2.87.
“The increase in fuel consumption we are forecasting for the summer driving season is a reflection of optimism about the U.S. economy as COVID-19 vaccinations and fiscal stimulus support continued recovery,” said EIA Acting Administrator Stephen Nalley. “There remains a lot of uncertainty, but rising levels of employment, disposable income, and consumer spending point to an improving U.S. economy.”
Retail gasoline prices recently reached their highest levels in almost two years, hitting an average of $2.87/gal on March 22. Increasing U.S. refinery production along with rising crude oil supply from OPEC, its partner countries, and U.S. tight oil producers should help bring those prices down. EIA forecasts retail gasoline prices to gradually fall to an average of $2.62/gal by September.