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Gasoline surplus is coming, energy group says

Although it may be higher in the short term, the price of gasoline should decline through the rest of the decade.
By Ed Adamczyk   |   June 17, 2014 at 5:40 PM   |   Comments

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PARIS, June 17 (UPI) -- The United States can expect a surplus of gasoline in the next few years, the International Energy Agency said in a report Tuesday.

Although uncertainty caused by turmoil in Iraq will likely raise the price of gasoline this summer, the U.S. gas demand is expected to decline by 1 percent per year for the rest of the decade, the Paris-based non-governmental organization said.

"Tightening fuel efficiency standards for automobiles, and changing consumer preferences look set to send U.S. gasoline demand back on the declining course on which it embarked in 2007," it said. The decline in demand will coincide with a larger supply, it added.

The U.S. currently accounts for about 10 percent of world consumption of oil.

Oil prices rose by about $4 per barrel, to about $107, last week after Islamic militants began an assault on Iraq, OPEC's second-largest producer of oil.

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