Tight Gasoline Supplies Expected This Summer
Phil Flynn, a representative of Alaron Trading, told CNBC’s “Squawk Box” that refinery outages and strong demand will create tight gasoline supplies this summer.
“This is the worst I have ever seen it at this time of year,” Flynn said Friday. “Our supply vs. demand has never been this tight before. It’s going to be a very dangerous summer and real bad luck for the consumers.”
The U.S. Energy Information Administration expects the price of regular gasoline to average $2.81 a gallon this summer, three cents below last year. Retail diesel prices are expected to average $2.82 a gallon this summer, down six cents from last summer.
Tight oil markets and continued international uncertainty, especially in the Middle East, are expected the drive the price of crude oil over $65 a barrel this summer. Last year’s price was $70.
Worldwide demand is expected to grow by 1.5 million barrels per day in 2007 and 1.6 million barrels per day in 2008. About half of the projected growth in world consumption will come from the United States and China, the Energy Information Administration said.
On the New York Mercantile Exchange, a barrel of oil recently fetched $64, up 15 cents.