Some U.S. Gasoline-Price Relief May Come Next Month

Washington DC May 23, 2007; The AIADA newsletter reported that record gasoline prices are expected to continue until at least June because of continuing production problems at U.S. refineries and low imports, the head of the Energy Information Administration said.

Guy Caruso told the Wall Street Journal that U.S. retail gasoline prices -- which this week hit an average price of $3.22 a gallon, an all-time high -- haven't peaked. He cited continuing problems in Nigeria, a source of easier-to-refine grades of oil for world markets, as well as that nation's need to import refined products such as gasoline and diesel for its own use.

"I am very hesitant to say we've reached the peak," said Caruso. Prices are expected to ease once refinery capacity returns and higher prices draw imports from other parts of the world.

At a separate energy gathering, Energy Secretary Samuel Bodman said "We seem to be recovering, and hopefully we'll see mitigation of concern soon." Mr. Caruso said that despite the problems, "if everything goes right...we are expecting things should improve in June."