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OIL AND GAS
EIA says summer average price per gallon higher than last year's
by Daniel J. Graeber
Washington (UPI) Jun 11, 2013


Top OPEC delegate says oil group can't keep markets stable by itself
Vienna (UPI) Jun 11, 2013 - Maintaining stable global oil market conditions isn't something the Organization of Petroleum Exporting Countries can do alone, a top delegate said Wednesday.

OPEC members met Wednesday in Vienna for a regular conference. Acting Libyan Oil Minister Omar Ali El Shakmak, serving as conference chairman, told delegates market stability was the top focus of member states.

The acting minister said the cartel expects world oil demand to increase by 1.1 million barrels per day and keeping markets satiated required a global effort. Market stability, he said, benefits all market players.

"To achieve this, though, OPEC cannot stand alone," he said in his address. "It will need the support and contribution of many stakeholders, who must do their part."

The 12 OPEC members combine to produce about 40 percent of the world's crude oil and their exports represent about 60 percent of the international market.

An increase in oil production from North America means the U.S. and Canadian markets are relying less on foreign imports to meet their energy demands. Shakmak said oil supply from countries outside of OPEC is expected to increase 1.4 million bpd to 55.5 million bpd and most of that growth is expected from North American producers.

Gasoline prices through the summer could be as much as 4 cents higher than the same time last year, the U.S. Energy Department said.

The average retail price for a gallon of regular unleaded gasoline in the United States for Wednesday was $3.63, reports motor club AAA. That price has held steady for nearly a month.

The U.S. Energy Information Administration said in its monthly report, published Tuesday, the summer average is near its expected peak of $3.62 per gallon, which is 4 cents higher year-on-year.

EIA, the statistical arm of the Energy Department, said the retail price for a gallon of gasoline is largely based on the price of crude oil and the difference between that price and the price for wholesale gasoline.

In last week's report on the U.S. petroleum sector, the administration said refineries were working at 90.8 percent capacity and gasoline production had declined.

EIA said the price for a gallon of regular unleaded gasoline peaked at $3.71 for the last week of April. The national average of $3.29 for the first week of February was the lowest for the year.

Prices should fall through summer with an expected average of $3.54 per gallon in September. For the year, EIA expects an average price per gallon of $3.50, 1 cent lower than the yearly average for 2013.

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