Analysts: U.S. economy won

Energy department sees China, other developing areas supporting prices

NEW YORK – Strong global demand for oil will keep prices high despite a downturn in demand in the U.S., two prominent forecasters warned.

The U.S. Energy Department and the International Energy Agency said Tuesday there is unlikely to be much relief from high oil prices because of brisk demand in China and other emerging markets.


In Washington, the Energy Department’s Energy Information Administration raised its average oil price estimate for this year from $86.46 to $94.11 a barrel, and boosted its average U.S. gasoline price estimate to $3.21 from $3.07 a gallon (3.8 liters). Gas prices will likely peak this spring near $3.50 a gallon, the EIA said, raising that forecast by a dime.

Last year, oil averaged $72.32 a barrel, and U.S. gasoline averaged $2.88 a gallon. On Tuesday, oil set a record of $109.72 a barrel on the New York Mercantile Exchange, and gas rose to a record of $3.2272 a gallon, according to AAA and the Oil Price Information Service.

AP