WASHINGTON - The global oil market for 2009 looks weaker today than it did a month ago, according to the U.S. Department of Energy’s (DOE’s) Energy Information Administration (EIA). The EIA’s latest Short-Term Energy Outlook now projects a fall in global oil consumption of 1.8 million barrels per day in 2009, a decline that is 0.4 million barrels per day larger than the EIA projected in April.
The EIA notes that the initial data for the first quarter of 2009 shows high oil inventories, weak oil consumption, and higher-than-expected oil production, all of which are putting downward pressure on oil prices. Crude oil prices are now projected to average $52 per barrel in 2009 and only $58 per barrel in 2010, with the latter projection falling $5 below the EIA’s projection released in April.
That’s good news at the pump for contractors, who can expect to pay an average of $2.12 per gallon for regular-grade gasoline this year and $2.30 per gallon next year, says EIA, while diesel fuel users are projected to pay $2.26 per gallon, on average, in 2009 and $2.48 per gallon in 2010.