Fuel Prices Expected To Remain High Due To World Tensions

[Staff]

High fuel prices could last into 2008, spurred on by international tensions in oil-producing regions, officials with the U.S. Energy Information Administration stated in the Short-Term Energy Outlook released Tuesday, April 10.

The current price surge, which began in February, is a result of international tensions, tight domestic supplies, an early start to spring and summer seasonal demands and a cutback in OPEC production, the EIA report stated said.

“Any real or potential disturbance to petroleum demand or supplies such as unusual weather, unscheduled refinery disruptions, or geopolitical uncertainty in oil-exporting regions can all result in large price increases in a short period of time,” EIA officials said.

A combination of international and domestic supply and demand factors boosted the national average price of on-highway diesel to $2.84 per gallon earlier this month, an increase of more than 18 cents per gallon since April 2006.

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