While crude oil prices dropped below $100 a barrel in this week’s trading, a federal government forecast says we can expect to see a high average hold this month.
That’s the prediction of the U.S. Energy Information Administration which came out Wednesday with a prediction that West Texas Intermediate crude in March will total $113 while the average for the second quarter of 2022 will be $112 a barrel.
“Our forecast is subject to heightened levels of uncertainty due to various factors, including Russia’s further invasion of Ukraine, government-issued limitations on energy imports from Russia, Russian petroleum production, and global crude oil demand,” stated the EIA.
A week ago, the EIA forecast an international benchmark price of $116 a barrel for the second quarter of 2022 and gasoline prices to average $4.10 a gallon during the same period.
Now the agency expects U.S. gasoline prices to average $4 a gallon in March and to continue rising to a forecast high of $4.12 a gallon in May before gradually falling through the remainder of the year.
“We forecast the U.S. regular retail gasoline price will average $3.79/gal in 2022 and $3.33/gal in 2023. If realized, the average 2022 retail gasoline price would be the highest average price since 2014, after adjusting for inflation, explained the EIA.