The U.S. Energy Information Administration (EIA) released its Short Term Energy Outlook (STEO) for this month, which forecasts that the price for a gallon of regular, unleaded gasoline will average $3.44 for the fourth quarter of 2013. This price is 11 cents per gallon higher than in last month’s STEO report. In 2012, the annual average regular gasoline retail price was $3.63 per gallon, and the EIA expects it will be $3.55 per gallon in 2013 and $3.43 per gallon in 2014.
For the price of oil, the EIA stated that the monthly average crude oil prices increased for the fourth month in a row in Aug., 2013, due to supply disruptions in Libya and concerns over the conflict in Syria. The IEA forecasts a spot price for Brent crude averages $109 per barrel during the second half of 2013, and will average $102 per barrel in 2014, which is $5 per barrel and $2 per barrel higher, respectively, than forecast in last month’s STEO. The EIA’s projected West Texas Intermediate (WTI) crude oil prices will average $101 per barrel during the fourth quarter of 2013 and $96 per barrel during 2014.
U.S. crude oil production, on the other hand, increased to an average of 7.6 million bbl/d in August. This is the highest monthly level of production since 1989, according to the EIA. The EIA forecasts U.S. total crude oil production will average 7.5 million bbl/d in 2013 and 8.4 million bbl/d in 2014, which is about 0.1 million bbl/d and 0.2 million bbl/d higher, respectively, than forecast in last month’s STEO.