Release Date: April 8, 2014

Here are the highlights of the latest EIA Short-Term Energy and Summer Fuels Outlook.

During the April-through-September summer driving season this year, regular gasoline retail prices are forecast to average $3.57/gallon (gal). The projected monthly national average regular retail gasoline price falls from $3.66/gal in May to $3.46/gal in September. EIA expects regular gasoline retail prices to average $3.45/gal in 2014 and $3.37/gal in 2015, compared with $3.51/gal in 2013. The July 2014 New York Harbor reformulated blendstock for oxygenate blending (RBOB) futures contract averaged $2.85/gal for the five trading days ending April 3, 2014. Based on the market value of futures and options contracts for this key petroleum component of gasoline, there is a 3% probability that its price at expiration will exceed $3.35/gal, consistent with a monthly average regular-grade gasoline retail price exceeding $4.00/gal in July 2014 (see EIA  Summer Fuels Outlook slideshow).


The North Sea Brent crude oil spot price in March averaged near $110 per barrel (bbl) for the ninth consecutive month, while West Texas Intermediate (WTI) crude oil prices remained flat near $101/bbl. New pipeline capacity from the Midwest into the Gulf Coast helped reduce inventories at the Cushing, Oklahoma, storage hub to 27 million barrels by the end of March 2014, the lowest level since November 2009. The discount of WTI crude oil to Brent crude oil, which averaged more than $13/bbl from November through January, fell to $7/bbl in March. EIA expects the WTI discount to average $9/bbl in 2014 and $11/bbl in 2015.

Natural gas working inventories on March 28, 2014, were 0.82 trillion cubic feet (Tcf), 0.88 Tcf (52%) below the level at the same time a year ago and 0.99 Tcf (55%) below the five-year average (2009-13). Henry Hub natural gas spot prices were volatile over the past few months, increasing from $3.95 per million British thermal units (MMBtu) on January 10 to a high of $8.15/MMBtu on February 10, before falling back to $4.61/MMBtu on February 27, and then bouncing back up to $7.98/MMBtu on March 4. EIA expects that the Henry Hub natural gas spot price, which averaged $3.73/MMBtu in 2013, will average $4.44/MMBtu in 2014 and $4.11/MMBtu in 2015.


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