WASHINGTON - The latest Short-Term Energy Outlook from the U.S. Department of Energy's (DOE's) Energy Information Administration (EIA) boosts its oil price projection for August by $3 per barrel, to $76.50, because of BP's recent Prudhoe Bay oil field shutdown in Alaska.

The EIA currently projects summer (April 1 to Sept. 30) prices for regular gasoline to average $2.92 per gallon, an increase of 4 cents per gallon over last month's projection. The report notes that the impact will be greatest on the West Coast, which consumes almost all of Alaskan oil production, but high oil inventories should help to moderate the price increases.

The EIA outlook also notes that international events continue to add uncertainty and upward price pressure on energy prices.

Publication date: 08/14/2006