EIA expects stable gasoline prices for remainder of 2010

The Hess station on Military Trail in Delray Beach on Wednesday evening.

By Palm Beach Business.com

DELRAY BEACH — Energy prices are expected to stay about where they are now for the remainder of the year, according to the latest short-term forecast from the federal Energy Information Administration. The forecast was released Wednesday.

EIA projects that crude oil, which averaged $77 per barrel in August, will average $77 per barrel through the fourth quarter of 2010, while rising to $82 per barrel in 2011, slightly below the forecasts in last month’s forecast. The price projections are based on expected levels of economic activity.

EIA expects that regular-grade gasoline to average $2.69 cents a gallon at the pump through the second half of this year, compared to $2.35 a gallon last year and $2.76 a gallon through the first half of 2010.

EIA’s survey for this week, released Tuesday, put the national average for regular at $2.682 a gallon, same as a week ago.  In Florida, regular is averaging $2.59 cents a gallon, down slightly from the $2.607 of a week ago.

Palm Beach County averaged $2.738 a gallon, according to AAA, but prices below $2.70 were common in South County.

AAA’s weekly fuel price advisory sees a downward trend in prices, if there’s any movement at all.

"Consumers won't see much of a change in retail gas prices this week, but it's very possible we could see a more significant decline next week," said Jessica Brady, manager, AAA Public Relations. "Typically after Labor Day, consumer demand drops and refineries begin a maintenance period as they start to prepare the switch in production from the summer blend fuel to the winter blend. The winter blend fuel is less expensive to produce and coupled with less demand results in lower gas prices for consumers."

In 2011, higher projected crude oil prices combined with strengthening refiner margins are expected to boost annual average motor gasoline prices to $2.90 per gallon, EIA says.