EIA Expects Higher Demand and Fuel Price Hike

The United States Energy Information Administration (EIA) has projected that energy prices will continue to rise on increased demand, according to its latest outlook report.

The EIA now expects the global demand for fuel will reach 97.7 million barrels per day, rising by 5.4 million barrels per day compared to its level in 2020.

The report also pointed to the high economic growth rate during the first quarter of the year, compared with the drop that began during the second quarter of 2020 due to the coronavirus pandemic.

Estimating a growth rate of 6.2% for 2020, similar to what has already been achieved in Q1, the EIA said U.S. gasoline consumption could increase by 1.2 million barrels a day to 9 million barrels per day during summer.