SIOUX FALLS, S.D. (KELO AM) - Rising crude oil prices will likely be passed on to consumers at the pump, but drivers are still expected to pay the lowest summer gasoline prices since 2004.
The Energy Information Administration says the price for regular will average $2.21 per gallon this summer, 17 cents higher than last month's forecast but 42 cents lower than the price last summer.
Rising crude oil prices are up about 70%, since hitting a 13‐year low in February, and record high summer gasoline demand are behind the jump at the pump. The price of crude oil makes up almost half the cost of a gallon of gasoline.
EIA expects the average monthly price for gasoline will peak at $2.28 per gallon in June and thento fall to $2.12 at the end of the summer driving season in September.
The growth in global oil inventories is expected to slow in response to stronger growth in world oil demand, with inventories now expected to be drawn down during the second half of next year.
The Energy Information Administration said oil inventories will grow by just under 1 million barrels per day this year.
Inventories will continue to grow during the first half of 2017 though at a decreasing rate before being drawn down by 100,000 barrels per day in the second half of next year.