EIA: Gas prices peaked in June

WASHINGTON, July 13 (UPI) -- Retail gasoline prices in the United States should hold more or less steady through the end of summer as demand remains steady, a federal review finds.

A short-term market report from the U.S. Energy Information Administration predicts an average retail price for a gallon of regular unleaded gasoline at $2.25 for the summer driving season, which runs from April through September.

The summer forecast is about 1 percent lower than the previous forecast from June and 15 percent lower than the summer forecast for 2015. For Wednesday, motor club AAA reports a national average retail price for a gallon of gasoline of $2.22 and EIA expects that price to drop another 1 percent by September.

"EIA expects the monthly average price of U.S. regular gasoline reached an annual peak in June of $2.37 per gallon, with lower prices expected in the second half of 2016," the monthly forecast read.

The trend in prices contrasts with consumption expectations from the EIA. The forecast of 9.3 million barrels of motor gasoline per year for 2016 would be the highest on record if accurate as consumers take advantage of lower prices at the pump.

AAA reports the national average price on this date last year was $2.77 per gallon.

EIA explained the discrepancy by noting improved vehicle fuel economy. Average fuel economies have improved by about 28 percent since the beginning of the millennium. Gasoline production, meanwhile, is just short of an all-time record, which is keeping prices at the pump in check.

Gasoline prices are in part a reflection of crude oil prices. The price for Brent crude oil, the global benchmark, is about 17 percent lower than this date in 2015.