DOE Warns of High Fuel Prices Next Spring December 6, 2000

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WASHINGTON (Reuters) via NewsEdge Corporation -

The U.S. Energy Department warned on Wednesday that American drivers could again face high gasoline prices next spring and summer due to tight motor fuel supplies.

``The current outlook points to the likelihood of gasoline stocks being relatively low at the beginning of the next driving season, a situation that would once again put spring gas prices under pressure and potentially increase the probability of price runups next summer,'' the Energy Information Administration (EIA), the department's statistical arm, said in its monthly outlook.

The EIA said gasoline stocks at the end of December are expected to be 5 million barrels less than it previously estimated and 4 million barrels less than it had forecast for March 1.

The EIA said current gasoline stocks are low because refiners are producing more heating oil to meet strong consumer demand for the winter, which so far this season has been much colder than last year.

The EIA forecast that gasoline prices at the pump will decline only slightly, if at all, this winter, then rise modestly when next year's driving season begins in the spring.

The average retail price of regular unleaded gasoline is projected to be about $1.51 a gallon at the end of the year, about a nickel below the pump price for August.

Gasoline prices next spring are expected to average $1.59 a gallon, 18 cents higher than the EIA forecast last month.

http://www.individual.com/story.shtml?story=c1206142.501

-- Martin Thompson (mthom1927@aol.com), December 06, 2000