SIOUX FALLS, S.D. (KELO AM) - The Energy Information Administration anticipates drivers will make a record fill-up this summer despite higher fuel prices than last year.
The summer driving season is from April through September and gasoline demand is expected to reach an all-time average high of just over 9.5 million barrels a day. Highway travel is forecast to be up 1.3% this summer.
The price for gas is expected to average $2.46 a gallon or about 23 cents higher than last summer. But it also is the third summer in a row where gas prices are below $3 a gallon.
Pump prices are expected to be higher because of higher crude oil prices which are expected to increase 16%. Every $1 increase in crude translates into about a 2.4-cent increase in the price of gasoline.
Meanwhile...U.S crude oil production is forecast to be higher in the next two years reaching 9.9 million barrels a day in 2018. That's 0.3 million barrels a day above the old mark reached in 1970.
In the first three months of this year, U.S. crude and liquid fuel production increased 3% while production outside the country declined 1%.
More domestic oil is being shipped overseas particularly to the Asian market where China is becoming a big buyer of U.S crude.