EIA forecasts a more than 30% year-on-year rise in summer retail gasoline prices

The U.S. Energy Information Administration forecast a more than 30% year-over-year rise in summer gasoline prices on the back of expectations for higher crude oil prices and an increase in travel, according to a report released Tuesday. The agency forecast an average retail price of $2.78 a gallon for regular unleaded gasoline in the April to September summer driving season this year, up from an average $2.07 for the summer season in 2020 when the pandemic curtailed travel. The EIA also raised its expectations for West Texas Intermediate crude prices by 2.9% from the previous forecast to $58.89 this year and by 3.6% to $56.74 next year. U.S. crude production, meanwhile, was seen at 11.04 million barrels a day this year, down 0.9% from the previous forecast. For 2021 the EIA cut its output view by 1.3% to 11.86 million barrels a day. On the New York Mercantile Exchange, May West Texas Intermediate oil was up 91 cents, or 1.6%, at $59.56 a barrel.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.