2010...Fuel Outlook
Posted by Karen Thomas on Sun, Dec 27, 2009 @ 01:24 PM
With three days left in 2009, much of what you read online, on paper, and on your new Kindle or Sony Reader will touch on what was over the last 362 days in an effort to wrap up an entire year's worth of news in a few paragraphs. And while there's no need for another 2009 synopsis, the RSI Open Road Blog will instead look ahead to 2010 over these next fuel days, starting with diesel trends to expect as we move into the New Year. Compared to 2008, this past year showed some relief with lower fuel prices at pumps throughout the nation. In addition, fuel-efficient improvements in technology were seen across the board, making their way into manufacturers 2010 fleets.
The following report is direct from the Energy Information Administration (EIA), providing a snapshot of fuel price expectations in 2010:
EIA expects the price of West Texas Intermediate (WTI) crude oil will average about $76 per barrel this winter (October-March). The forecast for the monthly average WTI price dips to $75 early next year then rises to $82 per barrel by December 2010, assuming U.S. and world economic conditions continue to improve. EIA's forecast assumes that U.S. real gross domestic product (GDP) grows by 1.9 percent in 2010 and world oil-consumption-weighted real GDP grows by 2.6 percent.
Rising crude oil prices contribute to an increase in the annual average regular-grade gasoline retail price from $2.35 per gallon in 2009 to $2.83 in 2010, as pump prices approach $3 per gallon during next year's driving season. Projected annual average diesel fuel retail prices are $2.46 and $2.96 per gallon, respectively, in 2009 and 2010. Average household expenditures on heating oil this winter are expected to increase to $1,911 from $1,864 last winter. Projected average household expenditures for propane of $1,700 this winter are almost 13 percent lower than last winter's $1,950.