Gas prices may be at summer's peak

EIA official says gasoline may be at or near high point but may spike again come summer's end.

May 9, 2005: 6:26 PM EDT

LONG BEACH (Reuters) - The average U.S. retail gasoline price, which hit a record $2.28 per gallon last month, may have peaked for the summer unless there is an unexpected surge in demand, a senior Energy Information Administration official said Monday.

"At this point little is certain," said John Cook, director of the EIA's petroleum division. "However, if crude oil prices do not increase further, the U.S. may have already seen or may lie near its high point for summer gasoline prices."

Cook spoke at a House Government Reform subcommittee hearing in California, where U.S. retail gasoline prices are among the highest in the nation. The panel also was to hear testimony from the California Energy Commission and the Government Accountability Office.

The weekly average nationwide retail gasoline price has fallen since it hit a record $2.28 per gallon in mid-April.

"A second peak toward the end of the driving season is possible if summer demand surges as it did in 2003, even without further increases in the price of crude oil," Cook told the hearing.

Cook repeated the EIA's April forecast that U.S. gasoline demand would rise 1.8 percent this summer to an average 9.3 million barrels per day. The agency is scheduled to release its next monthly forecast Tuesday.

On the crude oil side, Cook cautioned that U.S. prices could climb back into the mid-$50s as the nation prepares for the winter heating season.

"Crude oil prices could ease somewhat over the next few months," he said. "However as the world's high demand season gets underway in the run-up to winter, crude prices may rise again, possibly to the mid-$50s per barrel."

U.S. crude oil futures traded above a record $58 a barrel in early April, but have since declined to around $52 a barrel.