Oil and gasoline prices are going up this summer. Lester Graham reports, it appears the higher prices are not caused by lower supplies.
The Energy Information Administration’s new short-term energy outlook says gasoline prices will average about $2.92 this summer– hitting $3.00 or more in some regions. That’s about 50-cents a gallon higher than last summer.
The outlook also predicts oil prices to average $82 a barrel this summer. But, oil already hit $86 a barrel this week.
Stephen Schork with The Schork Report says… the government projections were put together about a week ago… and didn’t really anticipate the investors driving prices up this week.
“So this rally that we are seeing and this upward buy is based more on investor momentum than it is on underlying fundamentals. There’s plenty of oil on the market right now.”
The government says prices should remain relatively stable but rising… although is notes uncertainty over crude oil price forecasts remains high.
For The Environment Report, I’m Lester Graham.